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FTC Faces Crisis as Norms Erode and Trust Dwindles

September 19, 2024 | Energy and Commerce: House Committee, Standing Committees - House & Senate, Congressional Hearings Compilation


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FTC Faces Crisis as Norms Erode and Trust Dwindles
In a recent government meeting, officials discussed the critical state of the Federal Trade Commission (FTC), emphasizing the erosion of key operational norms that have historically underpinned the agency's effectiveness. The meeting highlighted the importance of maintaining standards and unwritten rules that foster respect, openness, and objectivity within the FTC, which are essential for its mission to support entrepreneurship and combat fraud.

A speaker noted that during their tenure at the FTC, a culture of respect among commissioners and staff was paramount, contributing to trust and collaboration. However, current reports indicate that minority commissioners feel excluded from significant decisions, and the Bureau of Economics is increasingly sidelined. This shift has led to a decline in staff morale, with the FTC's ranking in employee satisfaction plummeting from second to twenty-second among midsized federal agencies between 2020 and 2021.

The discussion also pointed out that despite ambitious changes, case counts under the current administration have not improved compared to previous ones. The speaker warned that neglecting these foundational norms could hinder the FTC's ability to effectively address fraud and protect consumers, ultimately undermining public trust in the agency.

Several recommendations were made to restore these norms, including requiring public comment periods for changes to FTC rules and reinforcing the role of the Bureau of Economics. However, rebuilding trust and adherence to these norms is seen as a complex challenge that requires commitment from all levels of the agency.

The meeting underscored the need for a renewed focus on the FTC's core values to ensure it can fulfill its vital mission effectively, serving both the American public and the integrity of the marketplace.

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