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A New Era of Fairness, Accountability, and Consumer Protection
Enforcing Existing Rules and Holding Corporations Accountable
Under Chair Khan’s leadership, the FTC has ramped up its enforcement of existing rules, tackling fraud, deception, and unfair business practices. These efforts not only shield consumers but also protect small businesses and workers from powerful corporate actors.
Cracking Down on Pharmacy Benefit Managers (PBMs)
The FTC launched an in-depth investigation into Pharmacy Benefit Managers (PBMs) for their role in driving up drug prices through illegal kickbacks and commercial bribery. This action specifically targets rising costs for life-saving medications like insulin and aims to protect both patients and independent pharmacies from exploitative practices.
“Affordable medication isn’t a privilege—it’s a right. By reining in PBMs, the FTC is standing up for patients who deserve fair pricing.”
Tackling “Junk Fees”
The commission initiated a significant crackdown on deceptive “junk fees” that businesses sneak into prices after consumers have made their selection. These hidden costs, which frustrate customers and obscure true pricing, are projected to save Americans 50 million hours annually—equivalent to over $10 billion in savings over the next decade.
Protecting Consumers from Fraud
The FTC has been relentless in pursuing fraudulent schemes across industries. Notable actions include:
- Suing Walmart for enabling fraudulent money transfers that cost consumers up to $1.3 billion.
- Filing a lawsuit against crypto firm Voyager Digital for misleading claims about the safety of digital assets.
- Ordering Publishers Clearing House to pay $18.5 million for manipulative and deceptive practices.
Promoting Fair Competition and Blocking Illegal Mergers
The FTC’s efforts to maintain competitive markets are redefining modern antitrust enforcement.
Updated Merger Guidelines
In collaboration with the Department of Justice, the FTC finalized new merger enforcement guidelines. These updated guidelines reflect current market realities, making it harder for corporations to form monopolies that:
- Raise prices for consumers
- Stagnate worker wages
- Stifle innovation across industries
Challenging Big Tech
The FTC has made landmark moves to challenge Big Tech’s dominance:
- Filed a groundbreaking antitrust lawsuit against Amazon for alleged monopolistic practices that harm both sellers and consumers.
- Continued opposition to Microsoft’s acquisition of Activision, citing concerns about reduced competition in gaming and technology.
Focusing on Healthcare Industry Monopolies
The healthcare sector has been a significant area of enforcement:
- Ordering biotech giant Illumina to unwind its purchase of cancer test maker Grail.
- Cracking down on private equity roll-ups in healthcare that prioritize profits over patient care.
- Preparing to sue PBMs steering patients toward high-priced drugs to maximize profits.
Protecting Consumer Rights and Privacy
The FTC’s initiatives extend beyond competition to ensuring consumers’ fundamental rights, including privacy and accessibility to repairs.
Right to Repair
In a unanimous move, the FTC began enforcing the “Right to Repair,” which prevents companies from restricting product repairs to authorized providers. This landmark decision prompted major changes, including Apple’s agreement to offer public access to parts and repair manuals. This shift empowers consumers, reduces waste, and supports sustainability efforts.
“Repairing what we own shouldn’t be a luxury. By protecting the Right to Repair, the FTC is putting power back in the hands of consumers.”
Data Privacy Protections
The FTC has taken aggressive steps to safeguard consumer data in an era of growing digital vulnerabilities. Recent actions include:
- Prohibiting X-Mode/Outlogic from selling sensitive location data that compromises user safety.
- Cracking down on companies sharing health information with third-party advertisers, which breaches privacy laws and trust.
Returning Money to Consumers
One of the most tangible outcomes of the FTC’s renewed focus has been its success in returning funds to consumers harmed by scams and corporate deception. Under Khan’s leadership, over $834 million has been returned to victims. Key cases include:
- Refunds to Amazon drivers who were unfairly denied tips.
- Restitution for consumers affected by the schemes of notorious figures like “Pharma Bro” Martin Shkreli.
- Compensation for victims of fraudulent business practices across sectors.
This commitment to justice ensures that wronged individuals are compensated while holding corporate actors accountable.
A New Era of Enforcement and Accountability
Under Chair Lina Khan’s bold leadership, the FTC has embarked on a transformative path to create a fairer and more transparent marketplace. By enforcing existing rules, challenging monopolies, and returning money to consumers, the agency is making clear that corporate misconduct will not go unchecked.
Lina Khan’s tenure represents a much-needed shift in the FTC’s role—a commitment to protecting not just consumers but also workers and small businesses. Her actions reaffirm that competition, fairness, and accountability are foundational to a thriving economy.
“The role of regulators is not to appease corporations but to protect people. This FTC under Lina Khan is finally doing just that—standing up to power, enforcing fairness, and returning justice to those who need it most.”
Conclusion
The FTC’s recent actions are a powerful reminder of what effective governance looks like. By tackling deceptive practices, blocking illegal mergers, and safeguarding consumer rights, the commission is holding corporations to account. As these efforts continue, we can expect a stronger, fairer economy where small businesses thrive, workers are valued, and consumers are protected.
The leadership of Lina Khan has redefined the role of the FTC, ushering in a new era where accountability is not optional but essential. It is a bold and necessary response to a world where unchecked corporate power can no longer be ignored.
Sources:
[1] https://www.economicliberties.us/our-work/factsheet-the-ftc-is-holding-corporate-actors-accountable-protecting-small-businesses-workers-and-consumers-2/
[2] https://www.cbsnews.com/news/federal-trade-commission-lina-khan-60-minutes/
[3] https://www.ftc.gov/about-ftc/commissioners-staff/lina-m-khan
