FTC Chairman Demands Congress Repeal Due Process

The compromise version of legislation to overhaul the nation’s financial regulations does not include expanded powers for the U.S. Federal Trade Commission, a victory for business groups that had lobbied against the measure.

FTC Chairman Jon Leibowitz had pushed hard for Congress to grant the agency new authority, saying the additional powers would enhance the FTC’s ability to protect consumers and respond to financial fraud.

Business groups said the measure would have given the FTC sweeping power to govern industries and sectors that had nothing to do with the financial crisis.

Those opposing the new FTC powers included leading industry groups representing advertisers, financial-services companies, retailers and software makers.

The House-passed version of the financial bill had granted new powers to the FTC, while the Senate bill did not.

The proposal would have given the FTC broad authority to impose civil penalties and the ability to pursue companies that aid and abet unfair or deceptive trade practices. The measure also would have given the FTC independent authority to litigate civil-penalty cases in court, as well as streamlined authority to promulgate new regulations.

FTC spokeswoman Cecelia Prewett said the proposed new authorities were not included in the compromise bill. She said the bill does give the agency one new authority: enhanced oversight of car dealers.

“And although we didn’t get the more effective rulemaking and other tools we sought, we are gratified that there is such strong and growing support in both chambers for the FTC and removing the laborious procedural hurdles we face.” (Italics added)