FTC Chair Abandons In-House Litigation for Conduct Cases
The Federal Trade Commission will no longer use its internal administrative process for antitrust conduct and consumer protection cases, shifting all such enforcement actions to federal court.
In a major policy shift, Federal Trade Commission Chairman Andrew Ferguson announced the agency will cease using its internal administrative process for anticompetitive conduct and consumer protection enforcement cases, opting instead to litigate them in federal court. Ferguson also signaled the FTC would move away from in-house adjudication for merger challenges to harmonize its approach with the Department of Justice.
This is a fundamental change for companies facing FTC scrutiny. The move from the agency's "Part 3" administrative tribunals to Article III courts introduces the Federal Rules of Civil Procedure, independent judicial oversight, and the potential for jury trials. The chairman cited the Supreme Court’s 2024 decision in SEC v. Jarkesy, which questioned the constitutionality of agency adjudication of private rights, as a key driver. This decision responds directly to a line of cases empowering targets of FTC actions to challenge the agency’s forum choice itself in federal court. Counsel should now anticipate that all future FTC litigation on conduct and consumer protection will occur in federal district court, altering strategic defense considerations and timelines.