Two House GOP committee chairmen have accused Federal Trade Commission Chairperson Leena Khan Overstepping the bounds of his powers and wasting taxpayer dollars in the process.
Judiciary Committee Chairman Jim Jordan (R-Ohio) and House Committee on Energy and Commerce Chairwoman Cathy McMorris Rodgers (R-Wash.) sent a letter to Khan on Thursday saying they are investigating a recently filed lawsuit by the FTC, in which the Arizona-based Coulter Motor Company has been accused of discriminating against Latino patrons. ,
On average, Latino customers paid about $1,200 more in interest and other charges than their non-Latino white counterparts, FTC allegedThe agency partnered with the state of Arizona on the case and the two parties reached a proposed $2.6 million settlement in August.
“Both commissioners [Andrew] Ferguson and [Melissa] Holyoke raised concerns not only because the FTC Act does not contemplate such claims, but also because the FTC making such a claim and including it as part of a settlement agreement could set a dangerous precedent,” Jordan and Rodgers said. Said.
Back at the end of June, US Supreme Court reversed The so-called Chevron Doctrine, which claims that judges should defer to executive agencies when questions arise about the scope of federal power.
The High Court concluded that the judiciary would have to address areas of legal ambiguity, setting the stage for potentially significant reductions in administrative status.
As a result of the high court’s June decision, the FTC “must convince the Court that Congress authorized the Commission to use the FTC Act for civil rights enforcement,” GOP representatives explained.
The Federal Trade Commission Act of 1914 authorizes the commission to take up antitrust issues, while the Equal Credit Opportunity Act of 1974 grants authority to pursue creditors who discriminate against applicants.
“Congress gave the FTC the power to enforce ECOA, but the authority to challenge conduct under ECOA does not allow the FTC to separately challenge conduct as “unfair discrimination” pursuant to the FTC Act,” the two GOPs said. The representatives insisted.
“Holyoak explained that your attempt to expand the FTC’s ‘unfair consumer protections’ into a broad civil rights authority ‘creates a new standard of liability that could have unintended and dangerous consequences,'” the pair said.
The FTC did not immediately respond to a request for comment.
Khan has emerged as a breakout star among progressives who have praised her radical approach against big conglomerates and Big Tech.
Even some Republicans, such as Senator Josh Hawley (R-Mo.) and GOP vice presidential nominee Senator J.D. Vance (R-Ohio), Have praised him before also,
Still, critics in the business community have argued that the 35-year-old’s actions could hinder innovation, especially in the emerging artificial intelligence field.
Recently, billionaire Mark Cuban publicly said he would like Vice President Kamala Harris to let Khan go if she wins the November 5 election.
A handful of Harris supporters on Wall Street have privately urged the Democratic campaign to get rid of Khan, Panic is rising in progressive circles,
“Let me make it clear, because the billionaires are trying to play footsie with the ticket: Anyone will go to Lina Khan and there will be a fight out and out,” said Representative Alexandria Ocasio-Cortez (D-NY). swore on x,
“And that’s a promise. She proves that this admin fights for the working people. “Removing him would be terrible leadership.”
Harris has not commented publicly Regarding whether it intends to retain Khan or not.
Meanwhile, with the November 5 election fast approaching, the FTC Chairman has been attending a number of events in recent weeks with prominent liberal politicians such as Senator Bernie Sanders (I-VT).
