UNITED STATES OF AMERICA

Federal Trade Commission

WASHINGTON, D.C. 20580

Office of Commissioner

Rohit Chopra

 

Prepared Opening Statement of

Commissioner Rohit Chopra

Before the United States House of Representatives

Committee on Energy and Commerce

Subcommittee on Consumer Protection and Commerce

Hearing on 

“Transforming the FTC: Legislation to Modernize Consumer Protection”

July 28, 2021

Chair Schakowsky, Ranking Member Bilirakis, and Members of the Subcommittee, thank you 

for holding this hearing today. It is an honor to be here with you and my fellow Commissioners.

The pandemic created the conditions for a wide range of market abuses that harmed so many 

Americans, including millions of small businesses. Many small businesses in America didn’t just 

find their financial futures in peril – they also found themselves completely under siege against 

unfair, deceptive, and anticompetitive practices by dominant firms. 

Local restaurant owners were worried about food delivery apps that used coercive practices to 

force them into paying massive fees. Franchisees faced new onerous requirements that national 

franchisors were imposing on them, even as they struggled to stay afloat. Independent 

pharmacists, who played a critical role in the response to the pandemic, found themselves at the 

mercy of so-called pharmacy benefit managers using tactics that are driving many local 

pharmacy and clinics out of business. And the list goes on and on. It was crystal clear that small 

businesses across the country needed the FTC’s help, but many felt ignored.

I appreciate your work to increase the effectiveness of the Federal Trade Commission. As you 

pursue these efforts, I would also encourage you to consider other reforms to ensure that the FTC 

is more responsive to small businesses, including examining laws related to ethics and financial 

conflicts of interest.

Small businesses have expressed concern that the FTC gives favorable treatment to large, 

powerful firms, such as Big Tech and Big Pharma giants, while ignoring pleas for action to 

address practices harming small players. And when Big Tech companies egregiously violate our 

privacy and the law, the FTC has shown it is willing to be lax and forgiving. But when small 

businesses violate these laws, the FTC brings down the hammer on them, wiping out revenues 

and even shutting them down. This two-tier approach doesn’t make sense.
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Congress should explore whether our laws should be amended to reduce favoritism toward 

dominant market actors, crack down on financial conflicts of interest, and increase 

responsiveness to local businesses and startups.

First, Congress should examine whether to revisit laws regarding post-employment restrictions 

for senior FTC officials. While senior officials cannot immediately appear before the agency on 

behalf of clients, many are able to quickly work behind the scenes, leveraging their intimate 

knowledge of non-public agency deliberations on law and policy. This gives them an enormous 

advantage on how to help large firms escape meaningful accountability when they break the law 

and how to advise large firms seeking specific FTC actions.

Small businesses and startups simply do not have the resources or ability to hire former FTC

Commissioners and Bureau Directors, who regularly appear before the agency on behalf of 

dominant firms. This creates an unlevel playing field for small businesses engaging with the FTC

seeking action or a fair resolution. 

Congress should assess whether existing post-employment restrictions and standards regarding 

financial conflicts of interest in our laws are adequate. While some argue that tougher restrictions 

will deter some from considering government service, our experience at the FTC reveals a 

different story, with many of our most talented officials devoting the vast majority of their career 

to working in public service.

In addition, Congress should also determine whether existing law regarding so-called sponsored 

travel needs to be updated. Under existing law, senior government officials can be sponsored by 

non-federal sources to travel to conferences and retreats largely attended by – and indirectly paid 

for – by those representing dominant firms, especially Big Tech. These events sometimes include 

closed-door panel discussions that are not open to the media or the public, giving conference 

organizers and their patrons a chance to gather intelligence about emerging policies and 

priorities. 

This non-public information can also be exploited by investment funds that can trade on and 

profit from these closed-door panels. Small businesses, startups, and the general public can’t 

easily access these private panel junkets and don’t have the resources to organize their own.

To ensure equal access and fairness for small businesses, it will be important to examine whether 

laws and regulations need to be amended to guard against real or perceived conflicts of interest 

when it comes to sponsored travel by non-federal sources. 

In closing, it is clear that honest businesses need the FTC more than ever. I am confident that we 

can work together to fairly administer the law and promote a marketplace free of fraud and 

anticompetitive abuses.

Thank you and I look forward to your questions.