Testimony of the Federal Trade Commission

Before the House Committee on Appropriations

Subcommittee on Financial Services and General Government

United States House of Representatives

Washington, D.C.

April 27, 2023
1 

I. INTRODUCTION

Chairman Womack, Ranking Member Hoyer, and members of the Subcommittee, thank 

you for inviting me to testify today.0F

1 Since I testified last year, the Commission has actively 

been protecting consumers and promoting competition throughout the economy. This testimony 

will address the Federal Trade Commission’s FY 2024 budget request; describe some of the 

important work the FTC is doing to fulfill its broad mission of ensuring open, competitive, and 

fair markets on behalf of consumers, workers, and honest businesses; and highlight some of the 

challenges we face. 

The Commission is grateful that in recent years, and particularly last year, Congress has 

increased the FTC’s appropriation. The Commission is putting this funding to good use as it 

continues to be at the forefront of many pressing issues, from corporate mergers affecting 

critical sectors of the economy, the integrity of our supply chains, and the prices consumers pay 

for drugs, to data practices that can expose Americans’ most sensitive and personal information. 

The FTC is charged with tackling unfair or deceptive practices—be it companies who lie about 

products being Made in America, prey on small businesses, make it hard for consumers to cancel 

unwanted subscriptions, use dark patterns to get children to make unintentional purchases online, or 

who peddle fake COVID cures or ineffective treatments for opioid addictions—and we’re 

responsible for rooting out unfair methods of competition that can crush entrepreneurs and stifle 

innovation. Our jurisdiction spans the entirety of the U.S. economy, and Congress has assigned

us the task of enforcing or administering the provisions of more than 80 statutes.1F

2

1 This written testimony reflects the views of the Commission. The oral statement and responses to questions reflect 

the views of the individual Commissioners, and do not necessarily reflect the views of the Commission or any other 

Commissioner.

2 FTC, Legal Library: Statutes, https://www.ftc.gov/legal-library/browse/statutes (last visited Apr. 23, 2023).
2 

We continue to deploy the full set of tools and authorities that Congress has granted us. 

This includes law enforcement, rulemaking, and research. As this testimony will describe, the 

FTC staff has been tireless in addressing fraud targeting seniors, servicemembers, and nonEnglish speakers; understanding and responding to the effects of rapidly changing technology; 

reviewing ever more complex merger transactions; litigating against defendants with 

seemingly limitless resources; undertaking new studies on pressing issues; and confronting legal

challenges to our authority. But we are not keeping pace with the demands of our expansive 

mission, which is why the FTC has requested $590 million in FY 2024. 

We are committed to ensuring that the funding Congress appropriates for the agency is 

used effectively and that we are addressing root causes and dealing with the most significant 

harms across markets, particularly by dominant firms whose business practices affect large 

numbers of Americans. And, as evidenced by our creation earlier this year of an Office of 

Technology, we are focused on the need to be forward-looking in anticipating problems and 

taking swift action, especially as it concerns next-generation technologies and nascent markets

across sectors. Orienting our work around these principles can help maximize our efficacy.

II. BUDGET AND RESOURCES

Currently, the FTC has around 1,200 employees on-board. The FTC’s enacted budget for 

FY 2023 of $430 million will enable us to grow by approximately 150 FTE, taking us from 1,230 

FTE to 1,380 FTE, a level we aim to hire to within the next year. Despite this increase, an FTE 

level of 1,380 is still approximately just 80% of what it was at the beginning of 1980,2F

3 while the 

nation’s GDP has increased six-fold since then. Demands on the Commission continue to grow 

3 FTC, FTC Appropriation and Full-Time Equivalent (FTE) History, https://www.ftc.gov/about-ftc/bureausoffices/office-executive-director/financial-management-office/ftc-appropriation (last visited Apr. 23, 2023)

(showing 1719 FTE in 1980). 
3 

as we review corporate mergers,3F

4 conduct more complex and expensive litigation, receive 

consumer complaints,4F

5 try to stay abreast of transformative technological and market changes,5F6

and respond to burgeoning requests for research and investigation of various economic sectors. 

These factors have underscored both the importance of our work and the critical need for 

additional resources. Last year, Congress increased the merger filing fees that offset the FTC’s 

appropriation, and we hope this facilitates bolstering the agency’s funding. 

For FY 2024, the FTC is requesting $590 million and 1,690 FTE. This request to increase

our budget by $160 million will fund an additional 310 FTE over our planned FY 2023 level of 

1,380 and enable us to address in part the increased demand on agency staff and resources. For 

FY 2024, we plan to deploy existing hiring strategies to build on the growth started in FY 2022 

to recruit the additional FTE sought in the FY 2024 budget request. 

This budget request leverages the agency’s existing Regional Office structure to expand 

the agency’s candidate pool and community presence, effectively use telework, and implement a 

4 As reflected in the annual report on the Hart-Scott-Rodino premerger program, the agencies reviewed an 

overwhelming number of HSR-reportable transactions in FY 2021 and issued more “Second Requests” for 

additional information from the merging parties than the year before, signaling a significant increase in the merger 

workload. See Press Release, Fed. Trade Comm’n, FTC, DOJ Issue Fiscal Year 2021 Hart Scott Rodino Premerger 

Notification Report (Feb. 10, 2023), https://www.ftc.gov/news-events/news/press-releases/2023/02/ftc-doj-issuefiscal-year-2021-hart-scott-rodino-premerger-notification-report. While the number of HSR filings has fallen since 

the FY2021 peak, they remain high, with filings for over 3200 transactions in FY2022. (Monthly HSR numbers are 

posted on the FTC website at https://www.ftc.gov/enforcement/premerger-notification-program). 5 See, e.g., Press Release, Fed. Trade Comm’n, New FTC Data Show Consumers Reported Losing Nearly $8.8 

Billion to Scams in 2022, https://www.ftc.gov/news-events/news/press-releases/2023/02/new-ftc-data-showconsumers-reported-losing-nearly-88-billion-scams-2022. 6 For example, as of March 2022, the UK’s Information Commissioner’s Office, the principal privacy enforcement 

agency in the UK, had 944 permanent staff. See Information Commissioner’s Office, Information Commissioner’s 

Annual Report and Financial Statements 2021-22 at 107 (July 2022), https://ico.org.uk/media/about-theico/documents/4021039/ico-annual-report-2021-22.pdf. Ireland’s Data Protection Commission, responsible for 

enforcing the European privacy regulation, had 196 employees as of December 2022. See Data Protection 

Commission, Annual Report 2022 at 53, https://www.dataprotection.ie/sites/default/files/uploads/2023-

03/DPC%20AR%20English_web.pdf. By contrast, the Federal Trade Commission’s Division of Privacy and 

Identity Protection currently has just 48 employees. Although it is true that FTC employees in other units, including 

the regional offices, the Division of Enforcement, and the Division of Marketing Practices, contribute to the 

Commission’s security and privacy efforts, the total number of FTC employees working on these issues is far 

exceeded by our European counterparts.
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nimbler workforce that will work on consumer protection and competition matters. Fully

executing on our mission requires that our analytical capabilities keep up with changing market 

realities, and this budget request accordingly seeks to better position us to recruit a range of 

experts, including financial analysts, technologists, and others. In addition to expanding on 

existing expertise, we intend to expand into new areas, such as by retaining child psychologists 

and youth-development experts to address certain harms and remedies.6F

7 These skills will allow 

us to continue building in-house expertise, supporting our ability to conduct market-wide 

inquiries and scrutinize emerging business practices.

The FY 2024 budget request also funds additional expert witness levels commensurate 

with the additional FTE levels, given our need to support expert work in litigation, particularly in 

cases against large, well-financed defendants. 

Additionally, the FTC seeks resources for systems modernization and infrastructure

upgrades to support a larger decentralized workforce and enhance applications that directly

support our mission, such as the comprehensive complaint database known as the Consumer 

Sentinel Network, which is accessible to law enforcement agencies across the country and 

internationally. 

The FTC’s budget request would be offset by fees collected from HSR filings and 

pursuant to the Telemarketing and Consumer Fraud and Abuse Prevention Act. When possible, 

the agency collects money to return to harmed consumers. During FY 2022, the FTC returned 

$497 million to consumers and the U.S. Treasury General Fund. Of this amount, judgments 

7

 FTC, Annual Performance Report for Fiscal Year 2021 and Annual Performance Plan for Fiscal Years 2022 to 

2023 at 79, https://www.ftc.gov/system/files/ftc_gov/pdf/21apr_22-23app.pdf; FTC, Strategic Plan for Fiscal Years 

2022-2026 at 24, https://www.ftc.gov/system/files/ftc_gov/pdf/fy-2022-2026-ftc-strategic-plan.pdf. 
5 

resulting in redress disbursements to harmed consumers totaled $325 million,7F

8

 and an additional 

$14 million in disgorgements was returned to Treasury. Also, civil penalty collections returned 

to Treasury totaled $158 million.

Throughout FY 2022, the FTC saved consumers an estimated $4.1 billion through its 

merger and nonmerger competition law enforcement actions and its consumer protection law 

enforcement actions.8F

9

 For FY 2022, every $1 of the FTC’s costs returned an estimated $30 in 

FTC-provided benefits to consumers. We expect that a larger budget would position us to further 

improve on this return on investment. 

III. CONSUMER PROTECTION MISSION

As the nation’s primary consumer protection agency, the FTC has a broad mandate to 

protect the public from unfair or deceptive practices throughout the economy. Among other 

issues, the FTC works to protect privacy and data security; ensure that domestic manufacturers, 

independent repairers, and other small businesses have a chance to compete fairly; fight fraud, 

junk fees, and related harms affecting consumers; combat opioid recovery and other health fraud; 

and stand up for historically underserved communities such as Older Americans and 

servicemembers. 

A. Protecting Every Community from Fraud and Deceptive Business Practices

The FTC is undertaking comprehensive enforcement action to root out fraud and 

deceptive business practices, including those that target historically underserved communities. 

8 Most of the redress disbursements were from cases that were resolved prior to the Supreme Court’s April 2021 

decision in AMG Capital Management, LLC v. FTC, 141 S. Ct. 1341 (2021), which invalidated the Commission’s 

ability to obtain refunds for consumers under Section 13(b) of the FTC Act. Once the Commission completes 

distribution of funds obtained in cases resolved prior to AMG, future Commission distributions will likely decrease 

due to the loss of the ability to obtain monetary relief under Section 13(b). 9 These estimates were calculated based on performance measures 1.1.1 (money returned to consumers and 

treasury), 1.1.2 (consumer savings from consumer protection law enforcement), and 2.1.2 (consumer savings from

antitrust enforcement). For more details on measurement and data quality, see FTC, FTC Data Quality Appendix, 

https://www.ftc.gov/system/files/ftc_gov/pdf/DQA-FY22-26%2C-3-1-2023.pdf (last visited Apr. 23, 2023).
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1. Reducing the Scourge of Unwanted Calls

In FY 2022, the FTC received more than 3 million complaints about unwanted calls, 

including 1.8 million reports about robocalls.9F

10 The Commission uses every tool at its disposal to 

combat these calls. The FTC has filed 161 enforcement actions against 545 companies and 438 

individuals alleged to be responsible for placing billions of unwanted telemarketing calls to 

consumers. We have also collected over $393 million in civil penalties and equitable monetary 

relief from these violators. In cases where perpetrators ran telemarketing scams, the FTC has 

obtained court orders shutting down these businesses and freezing their remaining assets so that 

those funds could be returned to consumers.10F

11 

The FTC is also disrupting foreign-based scammers that bring illegal robocalls into the 

United States. Earlier this month, the FTC announced Project Point of No Entry (“PoNE”), a new 

initiative targeting “point of entry” or “gateway” Voice over Internet Protocol (“VoIP”) service 

providers.11F

12 In collaboration with the Federal Communications Commission, the Industry 

Traceback Group, and state attorneys general, the FTC identifies point of entry VoIP service 

providers that are routing or transmitting illegal robocall traffic. The FTC then demands that they 

stop, warns that their conduct may violate the Telemarketing Sales Rule (“TSR”), and monitors 

10 FTC, Do Not Call Registry Data Book 2022: Complaint Figures for FY 2022 (2022), 

www.ftc.gov/system/files/ftc_gov/pdf/DNC-Data-Book-2022.pdf. 11 Temporary Restraining Order, FTC v. Green Equitable Sols., No. 2:22-cv-06499-FLA (C.D. Cal. Sept. 14, 2022), 

https://www.ftc.gov/system/files/ftc_gov/pdf/2022.09.14%20Order%20granting%20TRO.pdf (freezing the 

defendants’ assets and shutting down their deceptive practices). This action is being taken in conjunction with the 

state of California and involves allegations that the defendants illegally called consumers on the Do Not Call 

Registry, pitching mortgage relief services and falsely claiming to be affiliated with government COVID-19 relief 

programs. See Press Release, Fed. Trade Comm’n, Federal Trade Commission, California Take Action To Shut 

Down Mortgage Relief Operation That Preyed on Struggling Homeowners (Sept. 19, 2022), 

https://www.ftc.gov/news-events/news/press-releases/2022/09/federal-trade-commission-california-take-action-shutdown-mortgage-relief-operation-preyed. 12 Press Release, Fed Trade Comm’n, FTC Ramps Up Fight to Close the Door on Illegal Robocalls Originating from 

Overseas Scammers and Imposters (Apr. 11, 2023), https://www.ftc.gov/news-events/news/pressreleases/2023/04/ftc-ramps-fight-close-door-illegal-robocalls-originating-overseas-scammers-imposters. 
7 

their pursuit of recalcitrant providers, including by conducting law enforcement investigations 

and filing lawsuits when appropriate. 

The FTC is determined to go after not only individual bad actors but also the platforms 

that enable these practices on a massive scale.12F

13 The Commission has initiated two rulemakings 

that would modify the TSR to further assist law enforcement in the fight against unwanted 

calls.13F

14 

2. Fighting Opioid Recovery Fraud and Other Health-Related

Misconduct

The FTC has used the authority Congress gave us in the Opioid Addiction Recovery 

Fraud Prevention Act (“OARFPA”) to stop companies from exploiting Americans struggling 

with substance use disorders. In our first OARFPA case, we obtained a $3.8 million civil penalty 

judgment against R360 based on allegedly deceptive claims to consumers seeking substance 

abuse treatment.14F

15 Just last month, we announced an OARFPA action against AWAREmed 

alleging false efficacy claims and obtained a $100,000 civil penalty.15F

16

The FTC also has used its authorities to put an end to a variety of other deceptive 

treatment claims. In January 2023, the FTC put an end to allegedly deceptive bait-and-switch 

advertising for vision correction services, which cost consumers time and put honest businesses 

13 Complaint, United States v. Stratics Networks, Inc., No. 3:23-cv-00313 (S.D. Cal. Feb. 17, 2023), 

https://www.ftc.gov/system/files/ftc_gov/pdf/001-complaint.pdf. 14 Notice of Proposed Rulemaking, 87 Fed. Reg. 33,677 (June 3, 2022); Advance Notice of Proposed Rulemaking, 

87 Fed. Reg. 33,662 (June 3, 2022). 15 See Press Release, Fed. Trade Comm’n, FTC Hits R360 and its Owner With $3.8 Million Civil Penalty Judgement 

for Preying on People Seeking Treatment for Addiction (May 17, 2022), https://www.ftc.gov/newsevents/news/press-releases/2022/05/ftc-hits-r360-its-owner-38-million-civil-penalty-judgment-preying-peopleseeking-treatment-addiction. 16 Press Release, Fed. Trade Comm’n, FTC Sues Medical Clinic and Its Owner for False or Unsubstantiated Claims 

Its Treatment Center Could Cure Addiction and Other Diseases (Mar. 16, 2023), https://www.ftc.gov/newsevents/news/press-releases/2023/03/ftc-sues-medical-clinic-its-owner-false-or-unsubstantiated-claims-its-treatmentcould-cure-addiction. 
8 

at a disadvantage.16F

17 We continued aggressively litigating a case against health products 

marketers for allegedly making deceptive claims that their products grow bone and cartilage and 

relieve joint pain.17F

18 And, to ensure businesses avoid running afoul of the FTC Act, FTC staff 

recently issued the Health Products Compliance Guidance, the first update the FTC has made to 

its health-product business guidance in nearly 25 years.18F

19 

3. Combatting Fraud Targeting Older Americans

Protecting older consumers continues to be one of the FTC’s top priorities, which the 

agency pursues through aggressive law enforcement actions, innovative education and outreach 

campaigns, extensive research, and collaboration with partners and stakeholders. The FTC has 

brought a number of actions against companies targeting older adults with allegedly deceptive 

practices, including around timeshares,19F

20 sham health plans,20F21 and foot pain.21F22 In addition, as 

with its work on unwanted calls, the FTC is going after platforms that allegedly facilitate scams 

(like the grandparent and lottery or sweepstakes scams) at scale.22F

23 The FTC also has 

aggressively gone after companies making deceptive earnings claims, a business practice that 

disproportionately affects retirees and older adults looking to supplement their incomes. The 

17 Press Release, Fed. Trade Comm’n, FTC Approves Final Order Against LCA-Vision, Halting Alleged Bait-andSwitch Advertising for LASIK Laser Eye Surgery (Mar. 15, 2023), https://www.ftc.gov/news-events/news/pressreleases/2023/03/ftc-approves-final-order-against-lca-vision-halting-alleged-bait-switch-advertising-lasik-laser-eye. 18 Press Release, Fed. Trade Comm’n, FTC Order to Bar ZyCal Bioceuticals from Deceptive Health Marketing (Feb. 

6, 2023), https://www.ftc.gov/news-events/news/press-releases/2023/02/ftc-order-bar-zycal-bioceuticals-deceptivehealth-marketing. 19 Press Release, Fed. Trade Comm’n, FTC Announces New Business Guidance for Marketers and Sellers of Health 

Products (Dec. 20, 2022), https://www.ftc.gov/news-events/news/press-releases/2022/12/ftc-announces-newbusiness-guidance-marketers-sellers-health-products. 20 Complaint, United States v. Consumer Law Prot., LLC, No. 4:22-cv-01243 (E.D. Mo. Nov. 21, 2022), 

https://www.ftc.gov/system/files/ftc_gov/pdf/2123065SquareOneComplaint.pdf. 21 Press Release, Fed. Trade Comm’n, FTC Action Against Benefytt Results in $100 Million in Refunds for 

Consumers Tricked into Sham Health Plans and Charged Exorbitant Junk Fees (Aug. 8, 2022), 

https://www.ftc.gov/news-events/news/press-releases/2022/08/ftc-action-against-benefytt-results-100-

millionrefunds-consumers-tricked-sham-health-plans-charged. 22 Complaint, FTC v. Gravity Defyer Medical Technology Corp., No. 1:22-cv-01464 (D.D.C May 25, 2022), 

https://www.ftc.gov/system/files/ftc_gov/pdf/1923114GravityDefyerComplaintrev.pdf. 23 Complaint, FTC v. Walmart, Inc., No: 1:22-cv-03372 (N.D. Ill. June 28, 2022), https://www.ftc.gov/legallibrary/browse/cases-proceedings/182-3012-walmart-ftc-v.
9 

Commission’s deceptive earnings actions have included investment advisors,23F

24 crypto and other 

bogus business schemes,24F

25 and day trading.25F26 

The agency’s education and outreach work complements this vigorous enforcement. 

During 2022, the FTC updated its most popular26F

27 education campaign, Pass It On27F28 (Pásalo28F29 in 

Spanish), and promoted it through a series of webinars presented to thousands of representatives 

from congressional offices, aging services providers, and military support groups, among others. 

The FTC also created the Senior Fraud Advisory Office, pursuant to the Seniors Fraud 

Prevention Act of 2022, to advise the Commission on strategies to protect older Americans. The 

Commission’s external outreach was also formalized this year through the establishment of the 

Advisory Group, which facilitates collaborations with outside stakeholders.29F

30 The Commission’s 

annual report to Congress describes in detail our work for older adults.30F

31

4. Protecting Servicemembers and Veterans

Combatting fraud aimed at servicemembers remains a top priority. In July 2022, in its 

first case enforcing the Military Lending Act,31F

32 the FTC and a group of 18 states took action

24 Press Release, Fed. Trade Comm’n, FTC Suit Requires Investment Advice Company WealthPress to Pay $1.7 

Million for Deceiving Consumers (Jan. 13, 2023), https://www.ftc.gov/news-events/news/pressreleases/2023/01/ftc-suit-requires-investment-advice-company-wealthpress-pay-17-million-deceiving-consumers. 25 Press Release, Fed. Trade Comm’n, FTC Takes Action to Stop DK Automation and Kevin David Hulse from 

Pitching Phony Amazon and Crypto Moneymaking Schemes (Nov. 16, 2022), https://www.ftc.gov/newsevents/news/press-releases/2022/11/ftc-takes-action-stop-dk-automation-kevin-david-hulse-pitching-phony-amazoncrypto-moneymaking. 26 Press Release, Fed. Trade Comm’n, Federal Trade Commission Cracks Down on Warrior Trading For Misleading 

Consumers With False Investment Promises (Apr. 19, 2022), https://www.ftc.gov/news-events/news/pressreleases/2022/04/federal-trade-commission-cracks-down-warrior-trading-misleading-consumers-false-investmentpromises. 27 Since its original launch in 2014, nearly 18 million Pass It On materials have been distributed nationwide in 

English and Spanish. 28 See http://www.ftc.gov/PassItOn. 29 See http://www.ftc.gov/Pasalo. 30 See FTC, Scams Against Older Adults Advisory Group Meeting (Sept. 29, 2022), 

https://www.ftc.gov/newsevents/events/2022/09/scams-against-older-adults-advisory-group-meeting. 31 FTC, Protecting Older Consumers 2021-2022 (Oct. 2022), 

https://www.ftc.gov/system/files/ftc_gov/pdf/P144400OlderConsumersReportFY22.pdf. 32 10 U.S.C. § 987. 
10 

against Harris Jewelry, a national jewelry retailer, to stop the company from targeting military 

families with illegal financing and sales practices, ultimately requiring the company to pay $10.9 

million in refunds and engage in other affirmative assistance to its victims.32F

33 The Commission’s 

efforts to protect military and veteran communities include a vigorous, long-standing educational 

campaign and close coordination with servicemember and veteran agencies.33F

34 This collaborative 

outreach is the cornerstone of the annual Military Consumer Month,34F

35 which the FTC created 

and manages with its partners, including AARP’s Veterans & Military Families Initiative.35F

36 The

agency also participates in an ongoing working group led by the Department of Veterans Affairs 

(VA) to inform veterans how to avoid scams. 

5. Preventing Financial Exploitation

The FTC brought eight federal court actions in recent years against companies that 

targeted financially insecure consumers and made false credit repair, mortgage, or other debt 

33 Press Release, Fed. Trade Comm’n, FTC and 18 States Sue to Stop Harris Jewelry from Cheating Military 

Families with Illegal Financing and Sales Tactics (July 20, 2022), https://www.ftc.gov/news-events/news/pressreleases/2022/07/ftc-18-states-sue-stop-harris-jewelry-cheating-military-families-illegal-financing-sales-tactics; see 

also infra note 75 (discussing action against BurgerIM for deceiving veterans). 34 See, e.g., militaryconsumer.gov (launched by FTC and operated in cooperation with Department of Defense 

Office of Financial Readiness (DoD FinRed) and the Consumer Financial Protection Bureau’s Office of 

Servicemember Affairs (CFPB OSA)).

35 See Carol A. Kando-Pineda, Military Consumer Month 2022, FTC (June 27, 2022), 

https://consumer.ftc.gov/consumer-alerts/2022/06/military-consumer-month-2022. 36 See AARP, Veterans and Military Families, https://www.aarp.org/volunteer/causes/veterans-military-families/. 
11 

relief promises,36F

37 as well as one action against a debt relief payment processor.37F38 For example, 

last September, the FTC and the California Department of Financial Protection and Innovation 

filed a law enforcement action against several corporate and individual defendants doing 

business as Home Matters USA, among other names, for allegedly operating sham mortgage 

relief services that misled consumers and cost them millions.38F

39 The federal district court granted 

a Temporary Restraining Order including an asset freeze against the defendants, and litigation is 

ongoing. The Commission also is working closely with the Department of Education to prevent 

fraud around recent changes to the student loan program39F

40 and to ensure relief for those affected 

by deceptive practices by for-profit colleges.40F

41

37 Complaint, FTC v. ACRO Servs. LLC, No. 3:22-cv-00895 (M.D. Tenn. 2022), 

https://www.ftc.gov/system/files/ftc_gov/pdf/Complaint-Unsealed.pdf; Complaint, FTC v. Fin. Educ. Servs. Inc., 

2:22-cv-11120-BAF-APP (E.D. Mich. 2022), https://www.ftc.gov/system/files/ftc_gov/pdf/DE%201%20-

%20Complaint.pdf; Complaint, FTC v. Green Equitable Sols., No. 2:22-cv-06499-FLA (C.D. Cal. 2022), 

https://www.ftc.gov/system/files/ftc_gov/pdf/Home%20Matters%20-%20Complaint.pdf; Complaint, FTC v. SLAC, 

Inc., No. 5:20-cv-00470 (C.D. Cal. 2020), https://www.ftc.gov/system/files/documents/cases/doc_1_complaint.pdf; 

Complaint, FTC v. Am. Fin. Support Servs., Inc., No. 8:19-cv-02109-JWH (C.D. Cal. 2019), 

https://www.ftc.gov/system/files/documents/cases/192_3040_arete_financial_group_complaint_for_permanent_inju

ction_and_other_equitable_relief_11-12-19.pdf; Complaint, FTC v. Manhattan Beach Venture LLC, No. 2:19-cv7849 (C.D. Cal. 2019), https://www.ftc.gov/system/files/documents/cases/172_3041_mbv_complaint_0.pdf; 

Complaint, FTC v. Student Advocates Team, LLC, No. 8:19-cv-01728-JVS (C.D. Cal. 2019), 

https://www.ftc.gov/system/files/documents/cases/172_3036_pag_complaint_1.pdf; Complaint, FTC v. Elegant 

Sols., Inc., No. 8:19-cv-01333-JVS (C.D. Cal. 2019), 

https://www.ftc.gov/system/files/documents/cases/192_3105_elegant_solutions_-_first_amended_complaint.pdf. 38 Complaint, FTC v. Automatic Funds Transfer Servs., Inc., No. 1:21-cv-02932 (D.D.C. 2021), 

https://www.ftc.gov/system/files/documents/cases/complaint_7.pdf. 39 Press Release, Fed. Trade Comm’n, Federal Trade Commission, California Take Action To Shut Down Mortgage 

Relief Operation that Preyed on Struggling Homeowners (Sept. 19, 2022), https://www.ftc.gov/newsevents/news/press-releases/2022/09/federal-trade-commission-california-take-action-shut-down-mortgage-reliefoperation-preyed. 40 See K. Michelle Grajales, Student Loan Scammers Are Circling. Keep Them at Bay, FTC (Oct. 3, 2022),

https://consumer.ftc.gov/consumer-alerts/2022/10/student-loan-scammers-are-circling-keep-them-bay; Terri Miller,

Got Student Loans? Spot Scams Related to the Sweet Lawsuit, FTC (Sept. 16, 2022),

https://consumer.ftc.gov/consumer-alerts/2022/09/got-student-loans-spot-scams-related-sweet-lawsuit; Terri Miller,

Limited Waiver for Student Loan Forgiveness Ends October 31, FTC (July 21, 2022),

https://consumer.ftc.gov/consumer-alerts/2022/07/limited-waiver-student-loan-forgiveness-ends-october-31-0. 41 See Press Release, Fed. Trade Comm’n, FTC Enforcement Action Leads U.S. Dept. of Education to Forgive $71.7 

Million in Loans for Students Deceived by DeVry University (Feb. 16, 2022), https://www.ftc.gov/newsevents/news/press-releases/2022/02/ftc-enforcement-action-leads-us-dept-education-forgive-717-million-loansstudents-deceived-devry; Press Release, Fed. Trade Comm’n, Federal Trade Commission Takes Action Against ForProfit Medical School for Using Deceptive Marketing to Lure Students (Apr. 15, 2022), https://www.ftc.gov/newsevents/news/press-releases/2022/04/federal-trade-commission-takes-action-against-profit-medical-school-usingdeceptive-marketing-lure. 
12 

6. Combatting Junk Fees and Unwanted Charges

Junk fees are unavoidable charges for products with little or no value that are imposed on 

consumers with no notice. Consumers can get hit with junk fees at any stage of the purchase 

process, and companies may use digital dark patterns and other tricks to hide or mask them. 

These fees undercut honest businesses by making it harder to compete on price and cause harm 

to consumers who are often surprised and frustrated by unexpected charges. The FTC has 

initiated two new rulemakings to address this problematic conduct. Last year the FTC published 

a notice of proposed rulemaking to ban certain junk fees and bait-and-switch advertising tactics 

that can plague consumers throughout the car-buying experience. The proposal also would 

require dealers to make key disclosures to consumers, including providing a true “offering price” 

for a vehicle that would be the full price a consumer would pay, excluding only taxes and 

government fees.41F

42 Separately, we are exploring a rulemaking to crack down on deceptive or 

unfair junk fees across multiple industries. We are reviewing thousands of comments we 

received from the public on the types of junk fees they’ve experienced, and the harm caused by 

such fees.42F

43

The Commission also has proposed to amend the Negative Option Rule to better address 

deceptive or unfair practices around negative marketing, including perpetual subscriptions, 

difficulty in cancellation, and failure to obtain consumers’ express, affirmative consent.43F

44 The 

42 Press Release, Fed. Trade Comm’n, FTC Proposes Rule to Ban Junk Fees, Bait-and-Switch Tactics Plaguing Car

Buyers (June 23, 2022), https://www.ftc.gov/news-events/news/press-releases/2022/06/ftc-proposes-rule-ban-junkfees-bait-switch-tactics-plaguing-car-buyers. 43 Press Release, Fed. Trade Comm’n, Federal Trade Commission Explores Rule Cracking Down on Junk Fees (Oct. 

20, 2022), https://www.ftc.gov/news-events/news/press-releases/2022/10/federal-trade-commission-explores-rulecracking-down-junk-fees. 44 Press Release, Fed. Trade Comm’n, Federal Trade Commission Proposes Rule Provision Making It Easier for 

Consumers to ‘Click to Cancel’ Recurring Subscriptions and Memberships (Mar. 23, 2023), 

https://www.ftc.gov/news-events/news/press-releases/2023/03/federal-trade-commission-proposes-rule-provisionmaking-it-easier-consumers-click-cancel-recurring. 
13 

proposed rule amendment covers a broad scope of recurring subscriptions and similar 

arrangements in all media to ensure that sellers provide important information about these 

contracts up front, obtain consumers’ express informed consent, and provide simple cancellation 

mechanisms to allow consumers to easily cancel unwanted subscriptions.

7. Expanding Consumer and Business Education

The FTC’s Every Community Initiative represents the agency’s coordinated effort to 

ensure that the FTC is responsive to the needs of historically underserved communities. Through 

this initiative, the agency has provided historically underserved communities with practical, 

language-appropriate, and user-friendly educational resources and information to help them spot, 

avoid, and report scams.44F

45 The FTC continues to translate all its consumer education materials 

into Spanish and recently expanded its reach to speakers of other languages. With the launch of 

ftc.gov/languages, the agency now provides information on how to spot, avoid, and recover from 

scams in 12 languages.45F

46 All of these Every Community education and outreach efforts are 

supported by ethnic-media telebriefings, in-person roundtables, and paid media campaigns that 

have led to millions of impressions through print, radio, and digital media. 

45 See, e.g., FTC, Consumer Issues Affecting American Indian and Alaska Native Communities (2023), 

https://www.ftc.gov/reports/consumer-issues-affecting-american-indian-alaska-native-communities (describing 

expanded targeted education and outreach efforts with American Indian/Alaska Native (AI/AN) communities 

nationwide). Agency staff also employed listening sessions with sources trusted in AI/AN communities, built 

ongoing partnerships with tribal governments and organizations serving AI/AN populations, and created a site—as 

directed by Congress—to share information on the issues raised. See FTC, Native American Communities: Spot, 

Avoid, and Report Scams, https://consumer.ftc.gov/features/native-american-communities-spot-avoid-and-reportscams. 46 See FTC, Consumer Education in Multiple Languages, https://consumer.ftc.gov/features/languages. The 12 

languages include: Amharic, Arabic, Chinese (Simplified and Traditional), French, Hmong, Korean, Russian, 

Somali, Spanish, Tagalog, Ukrainian, and Vietnamese.
14 

B. Safeguarding Consumer Privacy and Strengthening Data Security

The FTC is taking bold steps to safeguard consumer data and move away from the 

“notice and choice” privacy model. We are particularly focused on health data, children and 

teens, data security, and market-wide initiatives to strengthen privacy and data security. 

1. Protecting Consumers’ Sensitive Health Data 

The FTC is taking action to address the privacy of health data where HIPAA does not 

apply, including data shared with direct-to-consumer health websites and apps that can reveal 

consumers’ medications, visits to providers, and health conditions. 

First, the FTC is taking action to ensure that geolocation data that reveals health 

conditions and other sensitive information is not indiscriminately sold to the highest bidder. In 

the summer of 2022, FTC staff warned the marketplace that we were prepared to bring 

enforcement actions to halt the illegal use and sharing of consumers’ geolocation data.46F

47 Last 

August, we filed a complaint against Kochava, Inc., alleging that the data broker compiled 

massive amounts of consumers’ geolocation data and then sold it to customers in a format that 

makes it easy to track consumers’ visits to sensitive locations, such as doctors’ offices, houses of 

worship, and temporary shelters for domestic violence survivors.47F

48 This matter remains in active 

litigation. 

47 Kristin Cohen, Location, Health, and Other Sensitive Information: FTC Committed to Fully Enforcing the Law 

Against Illegal Use and Sharing of Highly Sensitive Data, FTC Business Blog (July 11, 

2022), https://www.ftc.gov/business-guidance/blog/2022/07/location-health-and-other-sensitive-information-ftccommitted-fully-enforcing-law-against-illegal. 48 Press Release, Fed. Trade Comm’n, FTC Sues Kochava for Selling Data that Tracks People at Reproductive 

Health Clinics, Places of Worship, and Other Sensitive Locations (Aug. 29, 2022), https://www.ftc.gov/newsevents/news/press-releases/2022/08/ftc-sues-kochava-selling-data-tracks-people-reproductive-health-clinics-placesworship-other. 
15 

The FTC has also brought two groundbreaking actions barring consumer-facing health 

providers from sharing sensitive health data for advertising purposes. In GoodRx48F

49 and 

BetterHelp,49F

50 the Commission alleged that the companies disclosed their users’ personal health 

information to advertising platforms such as Facebook and Google, without consent and in 

contravention of their privacy promises. The settlements in these actions included important 

provisions prohibiting the transfer of data to third parties for advertising purposes, as well as 

other strong injunctive provisions, including requirements for consent for certain information 

sharing, data retention limitations, and deletion requirements. The GoodRx settlement included 

civil penalties resulting from the Commission’s first enforcement of the Health Breach 

Notification Rule.50F

51 The BetterHelp order includes $7.8 million in monetary relief which will go 

back to consumers as partial refunds, another first in a health privacy case. 

2. Protecting Children and Teens

Online services can pose unique risks to children and teens, and the FTC is taking an 

expansive look at how to protect minors from digital harms, both through the Children’s Online 

Privacy Protection Act Rule51F

52 (“COPPA”), which protects children under 13, as well as through 

Section 5 of the FTC Act. For example, we brought a law enforcement action against Epic 

Games, Inc. (“Epic”)—creator of the popular video game “Fortnite”—alleging that Epic violated 

49 Press Release, Fed. Trade Comm’n, FTC Enforcement Action to Bar GoodRx from Sharing Consumers’ Sensitive 

Health Info for Advertising (Feb. 1, 2023), https://www.ftc.gov/news-events/news/press-releases/2023/02/ftcenforcement-action-bar-goodrx-sharing-consumers-sensitive-health-info-advertising. 50 Press Release, Fed. Trade Comm’n, FTC to Ban BetterHelp from Revealing Consumers’ Data, Including 

Sensitive Mental Health Information, to Facebook and Others for Targeted Advertising (Mar. 2, 2023),

https://www.ftc.gov/news-events/news/press-releases/2023/03/ftc-ban-betterhelp-revealing-consumers-dataincluding-sensitive-mental-health-information-facebook. 51 The Health Breach Notification Rule also is subject to a rule review to consider, among other things, whether 

modifications of the rule are appropriate to increase its benefits to consumers. See Health Breach Notification Rule, 

85 Fed. Reg. 31,085 (Aug. 20, 2020). 52 16 C.F.R. § 312.
16 

COPPA52F

53 and engaged in an unfair practice by employing default settings that connected

children and teens via voice and text chat to strangers, exposing them to psychological harm.53F

54

This action ultimately resulted in a federal court order securing strong and novel relief for 

consumers—requiring Epic to adopt strong default privacy settings for children and teens, 

implement a privacy program subject to outside assessments, and pay a $275 million civil 

penalty, the largest ever under COPPA. 

The Commission also is committed to preventing data abuses around educational 

technology services and last year issued a Policy Statement making clear that we would use our 

full set of authorities to hold firms accountable. Last year, we brought an enforcement action 

against online learning platform Chegg, Inc. We alleged that Chegg collected sensitive 

information about its users and employees but failed to properly protect this data, leading to 

several data breaches that exposed the personal data of millions of customers. Now under FTC 

order, Chegg is required to implement strong data security measures, including documenting and 

following a data collection and retention schedule, providing multifactor authentication or an 

equivalent authentication method to its customers and employees, and providing customers with 

access and deletion rights for the information that Chegg collects about them.54F

55 

53 Press Release, Fed. Trade Comm’n, Fortnite Video Game Maker Epic Games to Pay More Than Half a Billion 

Dollars Over FTC Allegations of Privacy Violations and Unwanted Charges (Dec. 19, 2022), 

https://www.ftc.gov/news-events/news/press-releases/2022/12/fortnite-video-game-maker-epic-games-pay-morehalf-billion-dollars-over-ftc-allegations. 54 The FTC is considering steps to deepen this work, including retaining psychologists and youth development 

experts to allow the agency to analyze conduct, assess harms and remedies, and pursue studies with an 

interdisciplinary approach, including conduct affecting children. FTC, Federal Trade Comm’n Annual Performance 

Report for Fiscal Year 2021 and Annual Performance Plan for Fiscal Years 2022 to 2023 [hereinafter “FTC FY22- 

23 Annual Performance Report”] at 79, https://www.ftc.gov/system/files/ftc_gov/pdf/21apr_22-23app.pdf; FTC, 

Federal Trade Comm’n Strategic Plan for Fiscal Years 2022-2026 [hereinafter “FTC FY22-26 Strategic Plan”] at 

24, https://www.ftc.gov/system/files/ftc_gov/pdf/fy-2022-2026-ftc-strategic-plan.pdf. 55 Press Release, Fed. Trade Comm’n, FTC Brings Action Against Ed Tech Provider Chegg for Careless Security 

that Exposed Personal Data of Millions of Customers (Oct. 31, 2022), https://www.ftc.gov/news-events/news/pressreleases/2022/10/ftc-brings-action-against-ed-tech-provider-chegg-careless-security-exposed-personal-data-millions. 
17 

3. Strengthening Data Security

The best way for firms to protect consumers’ data is not to collect it in the first place. 

Accordingly, several recent Commission data security orders mandate restrictions on what data 

firms can collect and retain. For example, our recent order against the online alcohol marketplace 

Drizly, LLC requires the company to minimize the data it collects and keeps from consumers.55F

56

Likewise, the settlement with online merchandise platform CafePress requires the company to 

implement policies to minimize the data it collects, stores, and retains. The CafePress settlement 

order also requires the company to use secure multi-factor authentication methods.56F

57 

4. Developing Market-wide Initiatives to Protect Consumers’ Data 

In August 2022, the Commission issued an advance notice of proposed rulemaking on 

commercial surveillance and lax data security, which sought comment on the widespread 

collection of consumers’ personal information (such as browsing data, precise geolocation data, 

and health-related data), ongoing concerns around the security of consumer data, harm to kids 

and teens, and concerns around automated decision-making.57F

58 The Commission is reviewing the 

more than 11,000 comments we received and considering next steps. The Commission also has 

significantly strengthened the Safeguards Rule, amending the rule in 2021 to include more 

detailed requirements for financial institutions’ information security programs.58F

59 And we 

56 Press Release, Fed. Trade Comm’n, FTC Takes Action Against Drizly and its CEO James Cory Rellas for 

Security Failures that Exposed Data of 2.5 Million Consumers (Oct. 24, 2022), https://www.ftc.gov/newsevents/news/press-releases/2022/10/ftc-takes-action-against-drizly-its-ceo-james-cory-rellas-security-failuresexposed-data-25-million. The Drizly settlement also names the CEO, and thus imposes separate obligations on him 

which will follow him beyond Drizly, underscoring the need for C-Suite attention to data security obligations. 57 Press Release, Fed. Trade Comm’n, FTC Takes Action Against CafePress for Data Breach Cover Up (Mar. 15, 

2022), www.ftc.gov/news-events/news/press-releases/2022/03/ftc-takes-action-against-cafepress-data-breach-cover. 58 Press Release, Fed. Trade Comm’n, FTC Explores Rules Cracking Down on Commercial Surveillance and Lax 

Data Security Practices (Aug. 11, 2022), https://www.ftc.gov/news-events/news/press-releases/2022/08/ftc-exploresrules-cracking-down-commercial-surveillance-lax-data-security-practices. 59 Press Release, Fed. Trade Comm’n, FTC Strengthens Security Safeguards for Consumer Financial Information 

Following Widespread Data Breaches (Oct. 27, 2021), www.ftc.gov/news-events/news/press-releases/2021/10/ftcstrengthens-security-safeguards-consumer-financial-information-following-widespread-data. 
18 

continue to review other rules, including COPPA59F

60 and the Health Breach Notification Rule,60F61 to 

assess whether changes are necessary to better protect consumers’ data. 

C. Ensuring Fairness for Workers, Entrepreneurs, and Small Businesses

As American workers and small businesses attempt to recover from the effects of the 

pandemic, the Commission is taking a comprehensive approach—through enforcement, 

rulemaking, and advocacy—to ensuring that they are not held back by unfair or deceptive 

practices. 

1. Ensuring Domestic Manufacturers Can Compete Fairly 

As many firms look to onshore production and as many consumers look to buy “Made in 

America” goods, the FTC is taking comprehensive action to protect the integrity of the label and 

ensure a level playing field for domestic manufacturers. In 2021, the Commission finalized a rule 

that prohibits the misuse of the “Made in America” label, and the Commission is already taking 

action to enforce this rule. For example, in 2022, the Commission charged a manufacturer of 

lithium-ion batteries with falsely labeling its products as “Made in America.”61F

62 And months 

later, the Commission charged a seller of falsely advertised personal protective equipment.62F

63 The 

FTC will use all available tools to ensure scammers face heavy consequences for lawbreaking. 

Marketers making false “Made in USA” claims covered by other laws and rules that the 

FTC enforces also can expect consequences. For example, in the past year we charged 

60 Press Release, Fed. Trade Comm’n, FTC Seeks Comments on Children’s Online Privacy Protection Act Rule

(July 25, 2019), https://www.ftc.gov/news-events/news/press-releases/2019/07/ftc-seeks-comments-childrensonline-privacy-protection-act-rule. 61 Press Release, Fed. Trade Comm’n, FTC Seeks Comment as Part of Review of Health Breach Notification Rule

(May 8, 2020), https://www.ftc.gov/news-events/news/press-releases/2020/05/ftc-seeks-comment-part-reviewhealth-breach-notification-rule. 62 See United States v. Lithionics Battery, LLC, No. 8:22-cv-00868 (M.D. Fla. 2022) (imposing a civil penalty of 

treble profits on sales of deceptively marketed battery products). 63 See United States v. Axis LED Group, LLC, No. 3:22-cv-01389 (N.D. Ohio 2022) (imposing a civil penalty and 

suspended redress judgment based on sales of falsely labeled PPE and LED products).
19 

companies with making false claims for imported textile products such as apparel and bedding.63F

64

We also recently sued a manufacturer of glass baking products for continuing to advertise its 

products as “Made in USA” during a shift to overseas production at the height of the 

pandemic.64F

65 The FTC continues to carefully monitor the market for false “Made in America” 

claims and will use all available tools to ensure scammers who cheat consumers, honest 

businesses, and American workers face heavy consequences for their lawbreaking. 

2. Combatting Unfair or Deceptive Practices Affecting Gig Workers 

The Commission is making clear that regardless of whether gig workers are treated as 

employees or independent contractors under labor laws, they are fully protected by the FTC’s 

prohibition on unfair or deceptive practices. Last year, the Commission issued a Policy 

Statement highlighting how traditional principles of consumer protection and competition apply 

in the gig economy,65F

66 and the Commission continues to investigate potential law violations and 

bring enforcement actions to ensure fairness for these workers. Earlier this year, for example, the 

Commission issued a proposed order requiring HomeAdvisor to pay up to $7.2 million to 

contractors who may have been harmed by deceptive claims about the quality and source of the 

leads the company sells.66F

67 Since November 2021, the FTC has sent more than $60 million to 

64 See In re Lions Not Sheep Products, LLC, Docket No. C-4772 (July 28, 2022), 

https://www.ftc.gov/system/files/ftc_gov/pdf/C4772%20Decision%20and%20Order.pdf (imported apparel products 

relabeled as “Made in USA”); In re Electrowarmth Products, LLC, Docket No. C-4779 (Oct. 25, 2022) (imported 

bedding products entering the USA pre-labeled as “Made in USA”), 

https://www.ftc.gov/system/files/ftc_gov/pdf/222-3096-Electrowarmth-Decision-and-Order.pdf. 65 In re Instant Brands LLC, Docket No. C-4788 (Mar. 1, 2023) (imported glass measuring cups advertised as 

“Made in USA”).

66 See FTC, Policy Statement on Enforcement Related to Gig Work (Sept. 15, 2022), https://www.ftc.gov/legallibrary/browse/policy-statement-enforcement-related-gig-work. 67 Proposed Order, In re HomeAdvisor, Inc., Docket No. D-9047 (Jan. 23, 2023), https://www.ftc.gov/newsevents/news/press-releases/2023/01/ftc-order-requires-homeadvisor-pay-72-million-stop-deceptively-marketing-itsleads-home-improvement. 
20 

141,000 Amazon Flex drivers who allegedly had their tips deceptively withheld.67F

68 And, in July 

2022, the FTC and NLRB entered a Memorandum of Understanding to facilitate collaboration 

between the agencies on gig work and other labor markets.68F

69 

3. Allowing Consumers to Repair their Products and Giving 

Independent Repairers a Chance to Compete

In May 2021, the Commission submitted a report to Congress entitled Nixing the Fix: An 

FTC Report to Congress on Repair Restrictions.69F

70 In the report, the Commission found “scant 

evidence” to support manufacturers’ justifications for repair restrictions.70F

71 The Commission 

followed this report with three major actions against companies for allegedly imposing unlawful 

repair restrictions on consumers.71F

72 The Commission also is exploring other avenues to 

strengthen consumers’ right to repair, including by supporting state efforts72F

73 and seeking 

comment on whether manufacturers should be required to provide consumers with repair 

instructions.73F

74 

4. Protecting Franchisees from Unfair or Deceptive Practices

The agency continues to take an integrated approach to franchise issues, undertaking both 

enforcement and policy initiatives. Last year, for example, we partnered with the Department of 

68 Press Release, Fed. Trade Comm’n, FTC Returns Nearly $60 Million to Drivers Whose Tips Were Illegally 

Withheld by Amazon (Nov. 2, 2021), https://www.ftc.gov/news-events/news/press-releases/2021/11/ftc-returnsnearly-60-million-drivers-whose-tips-were-illegally-withheld-amazon. 69 Press Release, Fed. Trade Comm’n, Federal Trade Commission, National Labor Relations Board Forge New 

Partnership to Protect Workers from Anticompetitive, Unfair, and Deceptive Practices (July 19, 2022), 

https://www.ftc.gov/news-events/news/press-releases/2022/07/federal-trade-commission-national-labor-relationsboard-forge-new-partnership-protect-workers. 70 FTC, Nixing the Fix: An FTC Report to Congress on Repair Restrictions (May 2021), 

https://www.ftc.gov/system/files/documents/reports/nixing-fix-ftc-report-congress-repairrestrictions/nixing_the_fix_report_final_5521_630pm-508_002.pdf. 71 Id. at 6. 72 Press Release, Fed. Trade Comm’n, FTC Approves Final Orders in Right-to-Repair Cases Against HarleyDavidson, MWE Investments, and Weber (Oct. 27, 2022), https://www.ftc.gov/news-events/news/pressreleases/2022/10/ftc-approves-final-orders-right-repair-cases-against-harley-davidson-mwe-investments-weber. 73 Press Release, Fed. Trade Comm’n, FTC Testifies Before California State Senate on Right to Repair (Apr. 11, 

2023), https://www.ftc.gov/news-events/news/press-releases/2023/04/ftc-testifies-california-state-senate-rightrepair. 74 87 Fed. Reg. 64,399 (Oct. 25, 2022).
21 

Justice (“DOJ”) to file a suit against fast-food chain BurgerIM, alleging that the chain made false 

promises and withheld information required by the Franchise Rule to persuade more than 1,500 

consumers, some of them veterans, to purchase franchises.74F

75 Earlier this year, the agency issued 

a Request for Information (“RFI”) related to franchise agreements and franchisor business 

practices.75F

76 The RFI seeks information about the means by which franchisors may exert control 

over franchisees and their workers. Finally, we are coordinating closely with DOJ and the 

National Labor Relations Board over labor concerns, and in December 2021 we filed an amicus 

brief in a class action suit by 7-Eleven franchisees in which we successfully argued that the 

FTC’s Franchise Rule does not address whether franchisees are employees under Massachusetts 

law.

5. Shining a Light on Small Business Credit Reports

Credit reports can be make-or-break for small businesses. To better understand this 

opaque market, the FTC recently voted to issue orders under Section 6(b) of the FTC Act to five 

business credit reporting agencies, requiring that they provide information about: (1) how they 

collect and report data on small businesses; (2) how they market their business credit reporting 

products; and (3) whether and how they address factual errors in the reports.76F

77 The 6(b) study 

will shine a needed light on an industry that has not been reported on extensively but can be 

critical to the survival of a smaller firm. It will also advance the agency’s broader effort to ensure 

75 Press Release, Fed. Trade Comm’n, FTC Sues Burger Franchise Company That Targets Veterans and Others with 

False Promises and Misleading Documents (Feb. 8, 2023), https://www.ftc.gov/news-events/news/pressreleases/2022/02/ftc-sues-burger-franchise-company-targets-veterans-others-false-promises-misleading-documents. 76 Press Release, Fed. Trade Comm’n, Solicitation for Public Comments on Provisions of Franchise Agreements and 

Franchisor Business Practices (Mar. 10, 2023), https://www.ftc.gov/news-events/news/press-releases/2023/03/ftcseeks-public-comment-franchisors-exerting-control-over-franchisees-workers. 77 In March 2023, the FTC issued 6(b) orders to D&B, Experian Information Solutions, Equifax, Ansonia Credit 

Data, and Creditsafe USA. See Press Release, Fed. Trade Comm’n, FTC Launches Inquiry into Small Business 

Credit Reports (Mar. 16, 2023), https://www.ftc.gov/news-events/news/press-releases/2023/03/ftc-launches-inquirysmall-business-credit-reports. 
22 

a fair shot in the marketplace for small businesses and entrepreneurs. The 6(b) study follows the 

FTC’s April 2022 complaint and order with Dun & Bradstreet (“D&B”) in which the FTC 

alleged, among other things, that D&B reported incorrect information about small businesses 

then failed to provide a clear, consistent, and reliable way for those businesses to get 

corrections.77F

78 D&B is now subject to an order that bars it from misrepresenting certain types of 

credit improvement products and mandates better processes for businesses to correct errors. 

IV. COMPETITION MISSION

In addition to the consumer protection and privacy work discussed above, the FTC 

enforces the competition laws in many crucial sectors of our economy. Our competition mission 

is driven by the tenet that vigorous antitrust enforcement is critical to the growth and dynamism 

of our economy as well as to our shared prosperity and liberty. Recent decades, however, have 

vividly illustrated how Americans lose out when markets become more consolidated and less 

competitive. Prices rise, wages fall, and our markets become more fragile and less resilient.

These effects have been on full display over the last few years, as supply shocks stemming from 

the pandemic and contaminated products have led to severe shortages and steep price hikes. In 

light of these troubling realities, the FTC has been reassessing how we can enforce the antitrust 

laws to maximize our efficacy. This effort includes utilizing the full range of our competition 

authority, ensuring that our merger review fully captures a deal’s potential for harm, rethinking 

our approach to remedies, and targeting the root causes of competitive harm. Although this 

process is ongoing, as detailed below, we are proud of the significant accomplishments we have 

already made on this front. 

78 Decision and Order, In re Dun & Bradstreet, Docket No. C-4761, 

https://www.ftc.gov/system/files/ftc_gov/pdf/172%203196%20Dunn%20and%20Bradstreet%20combined%20pack

age%20unsigned_0.pdf. 
23 

A. Using the FTC’s Congressionally Provided Authorities

When Congress created the FTC, it gave the agency a wide range of authorities to combat 

unfair methods of competition. To ensure the Commission is faithfully discharging its statutory 

obligations, the FTC has renewed its commitment to use its entire suite of authorities to 

maximize the agency’s impact and faithfully execute the agency’s mission. 

Notably, the Commission issued a policy statement outlining the scope of Section 5 of 

the FTC Act, an authority Congress provided to the FTC to combat harmful and unfair conduct 

that lies outside the boundaries of the Sherman Act.78F

79 The policy statement lays out key 

principles for determining whether a business practice constitutes an unfair method of 

competition, including conduct that “may be coercive, exploitative, collusive, abusive, deceptive, 

predatory, or involve the use of economic power of a similar nature.”79F

80 The FTC used this 

authority to bring cases that resulted in three companies and two individuals dropping 

noncompete restrictions that they imposed on thousands of workers. According to the FTC 

complaints, these noncompete restrictions barred workers from seeking or accepting work with 

another employer or operating a competing business after they left the company.80F

81 These actions 

mark the first time the agency has challenged the use of noncompete restrictions for workers in 

positions ranging from low-wage security guards to manufacturing workers to engineers.

Reactivating the Commission’s competition rulemaking authority under Section 6(g) of 

the FTC Act is another example of this effort. In January, the Commission proposed a rule that 

79 FTC, Policy Statement Regarding the Scope of Unfair Methods of Competition Under Section 5 of The Federal 

Trade Commission Act (2022), https://www.ftc.gov/system/files/ftc_gov/pdf/P221202Section5PolicyStatement.pdf. 80 Id. 81 Press Release, Fed. Trade Comm’n, FTC Cracks Down on Companies That Impose Harmful Noncompete 

Restrictions on Thousands of Workers (Jan. 4, 2023), https://www.ftc.gov/news-events/news/pressreleases/2023/01/ftc-cracks-down-companies-impose-harmful-noncompete-restrictions-thousands-workers; Press 

Release, Fed. Trade Comm’n, FTC Takes Action Against Another Company That Imposed Harmful Noncompete 

Restrictions on its Workers (Mar. 15, 2023), https://www.ftc.gov/news-events/news/press-releases/2023/03/ftctakes-action-against-another-company-imposed-harmful-noncompete-restrictions-its-workers. 
24 

would ban employers from imposing noncompete restrictions on workers in all but a limited set 

of circumstances.81F

82 Substantial evidence shows that noncompete restrictions are reducing the 

competitiveness of labor markets and depriving businesses of a talent pool that they need to 

enter, build, and/or expand. Moreover, the FTC estimates that the new proposed rule could 

increase wages by nearly $300 billion per year and expand career opportunities for about 30 

million Americans. The Commission is taking extensive steps to inform the public about the 

proposed rule to ensure that all viewpoints are heard during the public comment period and will 

consider the input collected on the record before determining how to proceed.82F

83

B. Prioritizing Vigorous Merger Enforcement to Combat Consolidation

Together, the FTC and the DOJ represent the American people’s front-line defense 

against unlawful consolidation, and the work we do to prevent that consolidation is critically 

important. Our staff has worked tirelessly to meet the enormous demand of enforcing the laws 

against unlawful mergers, even as Commission resources have been strained by the 

unprecedented scale, volume, and complexity of mergers in recent years. Against this backdrop, 

the FTC remains committed to challenging unlawful deals. Consistent with that, over the past 16 

months, the FTC has moved to challenge major transactions in critical sectors of the economy, 

including semiconductors, defense, energy, healthcare, mortgage technology, and digital 

82 Press Release, Fed. Trade Comm’n, FTC Proposes Rule to Ban Noncompete Clauses, Which Hurt Workers and 

Harm Competition (Jan. 5, 2023), https://www.ftc.gov/news-events/news/press-releases/2023/01/ftc-proposesruleban-noncompete-clauses-which-hurt-workers-harm-competition. 83 On February 16, 2023, the FTC hosted a public forum to provide an opportunity for people to directly share their 

experiences with noncompetes. See FTC, FTC Forum Examining Proposed Rule to Ban Noncompete Clauses (Feb. 

16, 2023), https://www.ftc.gov/news-events/events/2023/02/ftc-forum-examining-proposed-rule-ban-noncompeteclauses. 
25 

markets.83F

84 This includes filing suit to block eight mergers outright,84F85 as well as eleven other 

anticompetitive mergers that parties have abandoned after the agency indicated competition 

concerns but before it filed a complaint.85F

86

The Commission is particularly concerned about mergers that may cause significant 

economywide harm. Just last month, the Commission challenged a $13.1 billion merger between 

the two leading providers of mortgage technology, Intercontinental Exchange, Inc. (“ICE”) and 

Black Knight.86F

87 The FTC’s complaint alleges that the merger would eliminate competition 

between the merging parties for certain key mortgage processing platforms and tools used by 

84 Fed. Trade Comm’n & Dep’t of Justice, Hart-Scott-Rodino Annual Rep. Fiscal Year 2022 (2023), 

https://www.ftc.gov/system/files/ftc_gov/pdf/p110014fy2021hsrannualreport.pdf. 85 Press Release, Fed. Trade Comm’n, FTC Acts to Block Deal Combining the Two Top Mortgage Loan 

Technology Providers (Mar. 9, 2023), https://www.ftc.gov/news-events/news/press-releases/2023/03/ftc-acts-blockdeal-combining-two-top-mortgage-loan-technology-providers; Press Release, Fed. Trade Comm’n, FTC Seeks to 

Block Microsoft Corp.’s Acquisition of Activision Blizzard, Inc. (Dec. 8. 2022), https://www.ftc.gov/newsevents/news/press-releases/2022/12/ftc-seeks-block-microsoft-corps-acquisition-activision-blizzard-inc; Press 

Release, Fed. Trade Comm’n, FTC Seeks to Block Virtual Reality Giant Meta’s Acquisition of Popular App Creator 

Within (July 27, 2022), https://www.ftc.gov/news-events/news/press-releases/2022/07/ftc-seeks-block-virtualreality-giant-metas-acquisition-popular-app-creator-within; Press Release, Fed. Trade Comm’n, FTC Sues to Block 

Merger Between Utah Healthcare Rivals HCA Healthcare and Steward Health Care System (June 2, 2022), 

https://www.ftc.gov/news-events/news/press-releases/2022/06/ftc-sues-block-merger-between-utah-healthcarerivals-hca-healthcare-steward-health-care-system; Press Release, Fed. Trade Comm’n, FTC Sues to Block Merger 

Between New Jersey Healthcare Rivals RWJBarnabas Health and Saint Peter’s Healthcare System (June 2, 2022), 

https://www.ftc.gov/news-events/news/press-releases/2022/06/ftc-sues-block-merger-between-new-jerseyhealthcare-rivals-rwjbarnabas-health-saint-peters; Press Release, Fed. Trade Comm’n, FTC and Rhode Island 

Attorney General Step in to Block Merger of Rhode Island’s Two Largest Healthcare Providers (Feb. 17, 2022), 

https://www.ftc.gov/news-events/news/press-releases/2022/02/ftc-rhode-island-attorney-general-step-block-mergerrhode-islands-two-largest-healthcare-providers; Press Release, Fed. Trade Comm’n, FTC Sues to Block Lockheed 

Martin Corporation’s Vertical Acquisition of Aerojet Rocketdyne Holdings Inc. (Feb. 15, 2022), 

https://www.ftc.gov/news-events/news/press-releases/2022/01/ftc-sues-block-lockheed-martin-corporations-44-

billion-vertical-acquisition-aerojet-rocketdyne; Press Release, Fed. Trade Comm’n, FTC Sues to Block $40 Billion 

Semiconductor Chip Merger (Dec. 2, 2021), https://www.ftc.gov/news-events/news/press-releases/2021/12/ftc-suesblock-40-billion-semiconductor-chip-merger. 86 See, e.g., Press Release, Fed. Trade Comm’n, Expected Federal Trade Commission Opposition to Transaction 

Leads Great Outdoors Group, LLC and Rival Sportsman’s Warehouse Holdings, Inc. to Abandon Plans for 

Proposed Merger (Dec. 3, 2021), https://www.ftc.gov/news-events/news/press-releases/2021/12/expected-federaltrade-commission-opposition-transaction-leads-great-outdoors-group-llc-rival. 87 Press Release, Fed. Trade Comm’n, FTC Acts to Block Deal Combining the Two Top Mortgage Loan 

Technology Providers (Mar. 9, 2023), https://www.ftc.gov/news-events/news/press-releases/2023/03/ftc-acts-blockdeal-combining-two-top-mortgage-loan-technology-providers. 
26

lenders to secure the best interest rates for customers, leading to higher prices for lenders and 

homebuyers.87F

88

The FTC is focused on fully scrutinizing all of the ways in which mergers can harm 

competition. Central to this effort is prioritizing consideration of both non-horizontal and 

forward-looking competitive harm. This approach is being incorporated into FTC merger review 

generally and has been reflected in several recent merger challenges, including those in the hightech, semiconductor, and defense markets. 

For example, in December 2022, the FTC sued to stop Microsoft Corp. from acquiring 

leading video game developer Activision Blizzard, Inc. and its blockbuster gaming franchises 

such as Call of Duty and World of Warcraft, alleging that the $69 billion deal would enable 

Microsoft to suppress competitors to its Xbox gaming consoles and its rapidly growing 

subscription content and cloud-gaming business.88F

89 The FTC’s complaint points to Microsoft’s 

record of acquiring and using gaming content to suppress competition from rival consoles. 

Currently, Activision is one of only a small number of top video game developers that create 

video games for multiple devices, including video game consoles, and it has pursued a strategy 

of offering its games on many devices as well as to subscription and cloud-gaming services, 

according to the complaint. After the merger, the complaint alleges, Microsoft would have both 

the means and the motive to harm competition by manipulating Activision’s pricing, degrading 

player experience on rival consoles or services, changing the terms of access to Activision 

games, or withholding content from competitors entirely, resulting in harm to consumers. The 

trial is scheduled to begin in August.

88 Id. 89 See FTC Seeks to Block Microsoft Corp.’s Acquisition of Activision Blizzard, Inc., supra note 85.
27 

The FTC’s suit to stop U.S. chip supplier Nvidia’s proposed $40 billion acquisition of 

U.K. chip design provider Arm is another example of an FTC merger challenged focus on nonhorizontal harm.89F

90 The complaint alleged that the proposed merger would have given one of the 

largest chip companies control over its rivals’ designs for competing chips. By doing so, the 

FTC’s complaint alleged that the combined firm would have had the means and incentive to 

stifle next-generation technologies, including those used to run datacenters and driver-assistance 

systems in cars. More than two months into its litigation with the FTC, Nvidia abandoned its 

acquisition of Arm—representing the first abandonment of a litigated vertical merger in many 

years. Blocking the deal preserved competition for key technologies and safeguarded future 

innovation while also preventing further disruption to an already distressed semiconductor 

supply chain. 

And the FTC’s increased focus on non-horizontal harm played a role in ensuring that our 

military continues to benefit from competition for crucial equipment. Last year, the FTC voted on a 

bipartisan basis to file a lawsuit to block Lockheed’s proposed acquisition of Aerojet, a $4.4 billion 

defense merger that would have eliminated the country’s only remaining independent supplier of key 

missile propulsion inputs and given Lockheed the ability to cut off its competitors’ access to these 

critical components.90F

91 The FTC’s investigation, conducted in close collaboration with the 

Department of Defense, determined that the deal would have resulted in higher prices and diminished 

quality and innovation for programs critical to our national security. This challenge dovetailed with a 

90 See FTC Sues to Block $40 Billion Semiconductor Chip Merger, supra note 85. 91 Press Release, Fed. Trade Comm’n, Statement Regarding Termination of Lockheed Martin Corporation’s 

Attempted Acquisition of Aerojet Rocketdyne Holdings Inc. (Feb. 15, 2022), https://www.ftc.gov/newsevents/news/press-releases/2022/02/statement-regarding-termination-lockheed-martin-corporations-attemptedacquisition-aerojet. 
28 

DoD report indicating that consolidation within the defense-industrial base poses a risk to national 

defense and identifying strong merger enforcement as a key tool to address it.91F

92

The FTC also prioritizes its Congressional mandate to arrest monopolies in their 

incipiency, an important effort to stop mergers before markets are dominated by only a few 

firms. This is demonstrated, in particular, by the FTC’s July 2022 challenge to Meta’s proposed 

acquisition of Within Unlimited.92F

93 As alleged in the complaint, social-media firm Meta has 

become the largest provider of virtual reality devices and a leading provider of related apps in the 

U.S., while Within is an independent virtual reality development studio that designed and built 

Supernatural, a popular app in the dedicated fitness virtual reality app market. The complaint 

alleged that, prior to the acquisition, Meta was a potential entrant in the virtual reality dedicated 

fitness app market with the required resources and a reasonable probability of building its 

own virtual reality app to compete in the space. While the court did not block the companies 

from consummating their deal, it did endorse a key theory that provides a pathway for 

challenging other mergers that eliminate a potential competitor.93F

94

The Commission also remains committed to stopping harmful mergers between direct 

competitors, especially in markets for healthcare services.94F

95 Those mergers threaten patients with 

92 Dep’t of Defense, Off. of the Under Secretary of Defense for Acquisition and Sustainment, State of Competition 

Within the Defense Industrial Base (Feb. 15, 2022), https://media.defense.gov/2022/Feb/15/2002939087/-1/-

1/1/state-of-competition-within-the-defense-industrial-base.pdf. 93 See FTC Seeks to Block Virtual Reality Giant Meta’s Acquisition of Popular App Creator Within, supra note 85. 94 See FTC v. Meta Platforms Inc., No. 5:22-cv-04325 (N.D. Cal. Feb. 3, 2023). 95 See, e.g., FTC Sues to Block Merger Between Utah Healthcare Rivals HCA Healthcare and Steward Health Care 

System, supra note 85; FTC Sues to Block Merger Between New Jersey Healthcare Rivals RWJBarnabas Health 

and Saint Peter’s Healthcare System, supra note 85. Additionally, the two largest healthcare systems in Rhode 

Island, Lifespan Corp. and Care New England Health System, called off their merger after the FTC, in conjunction 

with the Rhode Island Attorney General, sought to block the merger. See Press Release, Fed. Trade Comm’n, 

Statement Regarding Termination of Attempted Merger of Rhode Island’s Two Largest Healthcare Providers (Mar. 

2, 2022), https://www.ftc.gov/news-events/news/press-releases/2022/03/statement-regarding-termination-attemptedmerger-rhode-islands-two-largest-healthcare-providers. 
29 

higher cost and lower quality care95F

96 and healthcare workers with lower wages and poorer 

working conditions.96F

97 For example, on the same day in June 2022, the Commission voted to 

block two proposed hospital mergers: HCA’s acquisition of Steward Health Care System97F

98 and 

RWJBarnabas’s acquisition of Saint Peter’s Healthcare System.98F

99 The FTC will continue to 

identify and challenge hospital mergers that threaten access to critical healthcare services. 

The FTC also takes seriously its mandate to enforce federal premerger reporting 

requirements under the Hart-Scott-Rodino Act. Just last week, the Commission sued to stop 

Louisiana Children’s Medical Center from integrating three competing hospitals in the New 

Orleans area that it recently acquired from HCA Healthcare, Inc., alleging the parties defied 

96 See, e.g., Zack Cooper et al., The Price Ain’t Right? Hospital Prices and Health Spending on the Privately 

Insured, 134 Q.J. ECON. 51 (2019); Nancy Beaulieu et al., Changes in Quality of Care After Hospital Mergers and 

Acquisitions, 382 NEW ENG. J. MED. 51 (2020). For surveys of the research literature, see, e.g., Martin Gaynor & 

Robert Town, The Impact of Hospital Consolidation, THE SYNTHESIS PROJECT, ROBERT WOOD JOHNSON 

FOUNDATION (June 2012), http://www.rwjf.org/content/dam/farm/reports/issue_briefs/2012/rwjf73261; Martin 

Gaynor, Kate Ho & Robert Town, The Industrial Organization of Health-Care Markets, 53 J. ECON. LITERATURE

235 (2015).

97 See, e.g., Elena Prager & Matt Schmitt, Employer Consolidation and Wages: Evidence from Hospitals, 111 AM.

ECON. REV. 397 (2021); Daniel Arnold & Christopher Whaley, Who Pays for Health Care Costs? The Effects of 

Health Care Prices on Wages (RAND Health Care Working Paper, 2021), 

https://www.ehealthecon.org/pdfs/Whaley.pdf. The Commission laid out much of this empirical evidence in a recent 

policy paper highlighting the pitfalls of Certificates of Public Advantage (COPAs), which are efforts by states to 

replace beneficial healthcare competition with state oversight, that have proven to be detrimental for patient costs, 

quality, and reduced employee wages. Press Release, Fed. Trade Comm’n, FTC Policy Paper Warns About Pitfalls 

of COPA Agreements for Patient Care and Healthcare Workers (Aug. 15, 2022), http://www.ftc.gov/newsevents/news/press-releases/2022/08/ftc-policy-paper-warns-about-pitfalls-copa-agreements-patient-care-healthcareworkers. Recently, two hospital systems abandoned their proposed merger after the FTC raised concerns with the 

New York State Department of Health, voicing opposition to the granting of a COPA that would immunize the deal 

from antitrust scrutiny. See Press Release, Fed. Trade Comm’n, Statement of Elizabeth Wilkins, Director of the 

FTC’s Office of Policy Planning, on the Decision of SUNY Upstate Medical University and Crouse Health System, 

Inc., to Drop Their Proposed Merger (Feb. 16, 2023), https://www.ftc.gov/news-events/news/pressreleases/2023/02/statement-elizabeth-wilkins-director-ftcs-office-policy-planning-decision-suny-upstate-medical. 98 See FTC Sues to Block Merger Between Utah Healthcare Rivals HCA Healthcare and Steward Health Care 

System, supra note 85. 99 See FTC Sues to Block Merger Between New Jersey Healthcare Rivals RWJBarnabas Health and Saint Peter’s 

Healthcare System, supra note 85. 
30 

federal law by consummating the $150 million acquisition without reporting it to U.S. antitrust 

authorities and without observing the mandatory waiting period.99F

100

As a complement to this strengthened merger enforcement, the FTC is also reassessing 

the efficacy of its approach to merger remedies and identifying how to learn from lessons of the 

past. Specifically, we strongly disfavor behavioral remedies and will not hesitate to reject 

proposed divestitures that past experience has taught us cannot fully cure the underlying harm. 

For example, the FTC rejected a remedy proposal from the parties in challenging the merger 

between ICE and Black Knight, discussed above.100F

101 The FTC’s complaint alleges, among other 

things, that Black Knight’s proposed remedy would not transfer a freestanding business, creates 

an ongoing risk of continuing entanglements between the divested assets and the merged entity, 

and fails to fully address the anticompetitive effects likely to result from the merger. American 

consumers should not be forced to bear the risk of remedies that fail to maintain competition.

C. Targeting Anticompetitive Conduct for Maximum Impact

Despite a heavy merger workload, the FTC continues to maintain and develop a robust 

program to identify and stop anticompetitive conduct outside of the merger context. Specifically, 

the FTC is orienting its limited enforcement resources around targeting and rectifying root 

causes of anticompetitive conduct to avoid a whack-a-mole approach that imposes significant 

enforcement burden with few long-term benefits. We are also ensuring that our work is tackling 

the most significant harms across markets, particularly by dominant firms whose business 

practices affect many Americans.

100 Press Release, Fed. Trade Comm’n, FTC Sues to Stop the Potentially Illegal Integration of New Orleans Area 

Hospitals Over Failure to Follow Federal Reporting Law (Apr. 20, 2023), https://www.ftc.gov/newsevents/news/press-releases/2023/04/ftc-sues-stop-potentially-illegal-integration-new-orleans-area-hospitals-overfailure-follow-federal-reporting-law. 101 Press Release, Fed. Trade Comm’n, FTC Acts to Block Deal Combining the Two Top Mortgage Loan 

Technology Providers (Mar. 9, 2023), https://www.ftc.gov/news-events/news/press-releases/2023/03/ftc-acts-blockdeal-combining-two-top-mortgage-loan-technology-providers. 
31 

As part of this strategy, the FTC continues to scrutinize digital markets, recognizing that 

distinct features of digital technologies have ushered in new market dynamics and business 

strategies that require us to update our enforcement approach. Dominant digital platforms have 

captured control over key arteries of commerce and communications in ways that can undermine 

competition. The FTC’s investigations in digital markets recognize the critical role of data, 

network externalities, moat-building strategies, and other key factors to ensure that our 

enforcement is reflecting commercial realities. 

Notably, the FTC continues to prosecute its complaint against Facebook (now Meta) in a 

lawsuit that, in addition to other forms of relief, seeks the divestment of Instagram and 

WhatsApp.101F

102 The FTC’s amended complaint highlights the competitive importance of data and 

notes that privacy degradation can constitute an antitrust harm—a fact that the court also 

acknowledged when it denied Facebook’s motion to dismiss the FTC’s case.102F

103

The Commission is also committed to preventing the abuse of monopoly power that 

harms American farmers. In September 2022, the Commission and a bipartisan coalition of ten 

state attorneys general charged the two largest pesticides manufacturers, Syngenta and Corteva, 

with maintaining their monopoly positions by paying distributors to block competitors from 

selling their cheaper generic products to farmers.103F

104 The complaint alleges that Syngenta Crop 

Protection and Corteva, Inc. rely on pay-to-block schemes in which distributors get paid only if 

they limit their dealings with competing manufacturers. The primary legal issue in this case is 

102 Press Release, Fed. Trade Comm’n, FTC Alleges Facebook Resorted to Illegal Buy-or-Bury Scheme to Crush 

Competition After String of Failed Attempts to Innovate (Aug. 19, 2021), 

https://www.ftc.gov/newsevents/news/press-releases/2021/08/ftc-alleges-facebook-resorted-illegal-buy-or-buryscheme-crush-competitionafter-string-failed. 103 FTC v. Facebook, Inc., 581 F. Supp. 3d 34 (D.D.C. 2022). 104 Press Release, Fed. Trade Comm’n, FTC and State Partners Sue Pesticide Giants Syngenta and Corteva for Using 

Illegal Pay-to-Block Scheme to Inflate Prices for Farmers (Sept. 29, 2022), https://www.ftc.gov/newsevents/news/press-releases/2022/09/ftc-state-partners-sue-pesticide-giants-syngenta-corteva-using-illegal-pay-blockscheme-inflate. 
32 

whether the antitrust laws bar firms from extending their patent monopolies through these payto-block schemes that restrict distributors from buying cheaper generic products.104F

105 But for 

farmers the question is more practical: whether the antitrust laws protect them from abusive 

monopoly practices that threaten their livelihood by denying them access to cheaper versions of 

products they have to buy. This case is pending in federal court in North Carolina.105F

106

D. FTC Research and Policy Development 

Alongside enforcement, the Commission is making long-term investments to maximize 

the impact of our policy and research work. To tackle the pressing issues of today and tomorrow, 

we are broadening our institutional skillsets to ensure we are fully grasping market realities, 

especially as the economy becomes increasingly digitized. 

Despite a very heavy enforcement workload, we continue to prioritize making substantial 

investments to remain faithful to our mandate to engage in policy and research development 

pursuant to Section 6 of the FTC Act. Through Section 6(b) of the FTC Act, Congress gave the 

agency broad investigative powers to conduct market-wide inquiries that allow us to keep pace 

with new business practices and market trends. In seeking to examine and get diverse feedback 

from stakeholders about pressing or emergent issues, the Commission has also issued Requests 

for Information. 

One focus of Commission research and policy has been healthcare markets. For example, 

last June, the Commission authorized a 6(b) study of the contracting practices of pharmacy 

benefits managers (“PBMs”).106F

107 This comprehensive study will shine a light on the opaque 

105 The FTC has a long history of suing pharmaceutical companies for illegal pay-for-delay agreements that extend 

their patent monopolies and delay generic entry. See FTC v. Actavis, Inc., 570 U.S. 136 (2013). 106 See FTC v. Syngenta Crop Protection AG, et al., No. 1:22-cv-00828 (M.D.N.C.). 107 Press Release, Fed. Trade Comm’n, FTC Launches Inquiry Into Prescription Drug Middlemen Industry (June 7, 

2022), https://www.ftc.gov/news-events/news/press-releases/2022/06/ftc-launches-inquiry-prescription-drugmiddlemen-industry. Consistent with the competition concerns that prompted the PBM study, the Commission 
33 

operations of these large pharmacy middlemen who can dictate the pricing and access to lifesaving drugs for so many Americans. The Commission also issued an RFI last year relating to 

the infant formula crisis,107F

108 and we hope to report soon on what we learned. 

The Commission is also working to complete a report from its 6(b) study of ongoing 

supply chain disruptions.108F

109 As the recent shortage of baby formula illustrates, in industries 

dominated by a few large suppliers, a single plant closure can have ripple effects throughout the 

supply chain, leaving some Americans struggling to find essential products. In response, the 

Commission used its 6(b) authority to order nine large retailers, wholesalers, and consumer 

goods suppliers to provide detailed information needed to better understand both the factors that 

have contributed to supply chain disruptions and how they may have contributed to bottlenecks, 

shortages, anticompetitive practices, or rising consumer prices. We are endeavoring to complete 

this timely study as quickly as possible. 

Just last month, the Commission announced a new RFI on cloud computing.109F

110 The 

Commission is gathering information to inform our understanding of key features of cloud 

computing; the potential for outages from large cloud providers to have widespread impact on 

large parts of the economy that rely on them; security risks; and issues related to market power 

and business practices affecting competition. 

issued a “Policy Statement on Rebates and Fees in Exchange for Excluding Lower Cost Products,” putting the drug 

industry on notice that paying rebates and fees to exclude competition from formularies violates the antitrust laws. 

Press Release, Fed. Trade Comm’n, FTC to Ramp Up Enforcement Against Any Illegal Rebate Schemes, Bribes to 

Prescription Drug Middlemen that Block Cheaper Drugs (June 16, 2022), http://www.ftc.gov/newsevents/news/press-releases/2022/06/ftc-ramp-up-enforcement-against-illegal-rebate-schemes. 108 Press Release, Fed. Trade Comm’n, Federal Trade Commission Launches Inquiry Into Infant Formula Crisis

(May 24, 2022), https://www.ftc.gov/news-events/news/press-releases/2022/05/federal-trade-commission-launchesinquiry-infant-formula-crisis. 109 Press Release, Fed. Trade Comm’n, FTC Launches Inquiry Into Supply Chain Disruptions (Nov. 29, 2021), 

https://www.ftc.gov/news-events/news/press-releases/2021/11/ftc-launches-inquiry-supply-chain-disruptions. 110 Press Release, Fed. Trade Comm’n, An Inquiry into Cloud Computing Business Practices: The Federal Trade 

Commission is seeking public comments (Mar. 22, 2023), https://www.ftc.gov/news-events/news/pressreleases/2023/03/ftc-seeks-comment-business-practices-cloud-computing-providers-could-impact-competition-data. 
34 

E. Collaboration Across Government to Promote Competition 

The FTC recognizes the value and importance of deepening our collaboration and 

partnerships with other government entities. These relationships act as force multipliers to 

promote fair competition throughout our economy. 

Collaborating with other federal agencies ensures we are benefiting from expertise across 

government, drawing on industry-specific knowledge, and in turn helping equip other agencies to 

diagnose and address competition problems more directly. Consistent with this “whole-ofgovernment” approach to competition, the Commission provided input to several key reports, 

adding our perspective on issues affecting competition in a wide range of markets.110F

111 In July

2022, the FTC entered into an agreement with the National Labor Relations Board that lays out 

how the two agencies will work together on key issues such as labor market concentration, onesided contract terms, and labor developments in the “gig economy.”111F

112 Overall, these 

collaborations have deepened our relationships with sector regulators, providing a basis for 

future coordination and cooperation.

Other opportunities for deepening our partnerships lie with both the state attorneys 

general and in the international arena. We regularly engage with our state and international 

enforcement partners on both policy initiatives as well as enforcement matters. This includes 

filing cases jointly with state attorneys general112F

113 as well as cooperation on many matters with

111 See, e.g., Dep’t of Treasury, Competition in the Markets for Beer, Wine, and Spirits (Feb. 2022), 

https://home.treasury.gov/system/files/136/Competition-Report.pdf. 112 Press Release, Fed. Trade Comm’n, Federal Trade Commission, National Labor Relations Board Forge New 

Partnership to Protect Workers from Anticompetitive, Unfair, and Deceptive Practices (July 19, 2022), 

http://www.ftc.gov/news-events/news/press-releases/2022/07/federal-trade-commission-national-labor-relationsboard-forge-new-partnership-protect-workers. 113 See, e.g., FTC and Rhode Island Attorney General Step in to Block Merger of Rhode Island’s Two Largest 

Healthcare Providers, supra note 85; Press Release, Fed. Trade Comm’n, FTC and NY Attorney General Charge 

Vyera Pharmaceuticals, Martin Shkreli, and Other Defendants with Anticompetitive Scheme to Protect a List-Price 

Increase of More than 4,000 Percent for Life-Saving Drug Daraprim (Jan. 27, 2020), https://www.ftc.gov/newsevents/news/press-releases/2020/01/ftc-ny-attorney-general-charge-vyerapharmaceuticals-martin-shkreli-otherdefendants-anticompetitive. 
35

foreign antitrust agencies.113F

114 Given the reality of limited resources, these partnerships are even 

more critical as we learn and benefit from the experience of our domestic and overseas 

counterpart agencies. 

V. ENHANCING THE COMMISSION’S TECHNICAL EXPERTISE

In February, the FTC announced the launch of a new Office of Technology (OT) to 

support the agency’s law enforcement and policy work. Led by our Chief Technology Officer, 

this office offers critical in-house technical expertise, enabling the Commission to keep pace 

with technological challenges in the digital marketplace. This office houses staff with skills and 

expertise across software engineering, human-computer interaction design, data science, and 

product management. Subject matter expertise will range across topics such as security and 

privacy, digital markets, augmented and virtual reality, automated decision making, the gig work 

economy, and ad-tracking technologies.

OT will work across the FTC to ensure that the agency can move swiftly and with 

sophistication on a wide range of issues implicating technology across the agency, with the 

following three mandates: First, to strengthen and support law enforcement investigations and 

actions. OT supports investigations into business practices and the technologies underlying them; 

develops investigative techniques; aids in the crafting of effective Civil Investigative Demands;

aids in the review and analysis of data and documents received in investigations; supports the 

development of case theories and analysis; and advises on the creation of effective remedies. 

Where appropriate, OT will support litigation teams by serving as, or by helping to identify, 

114 This includes our review of the now-abandoned merger between Nvidia and Arm, where we cooperated closely 

with agencies in many jurisdictions, including the European Union, Japan, South Korea, and the United Kingdom. 

FTC Sues to Block $40 Billion Semiconductor Chip Merger, supra note 85.
36 

expert witnesses. This behind-the-scenes work is OT’s principal mission and is critical to the 

Commission’s ability to address the rapidly changing digital marketplace.

Second, OT advises and engages with FTC staff and the Commission on policy and 

research initiatives. OT’s technological expertise is routinely integrated into non-enforcement 

agency actions, including 6(b) studies, reports, requests for information, research, policy 

statements, and policy deliverables. OT offers a unique cross-bureau perspective on emerging 

technologies and industries, exemplified by its involvement with the Cloud Computing RFI, 

which identified significant competition and consumer protection issues for further study.114F

115

Technologists provide strategic guidance on technology matters through report recommendations 

and participate in engagement with regulatory counterparts in partnership with the Office of 

International Affairs. 

Third, OT engages the public and relevant experts to understand trends and to advance 

the Commission’s work. OT will be uniquely suited to proactively engage with external 

stakeholders to identify emerging technologies that implicate the Commission’s consumer 

protection and competition mandates and to use these findings to advance the Commission’s 

work. This can be done through mechanisms such as formal workshops, research conferences, 

and briefings or consultations.115F

116 OT can also draw on the combined authority of its expertise 

115 See FTC Office of Technology, An Inquiry into Cloud Computing Business Practices: The Federal Trade 

Commission is Seeking Public Comments (Mar. 22, 2023) (seeking information about competition and data security, 

among other things), https://www.ftc.gov/policy/advocacy-research/tech-at-ftc/2023/03/inquiry-cloud-computingbusiness-practices-federal-trade-commission-seeking-public-comments. See also FTC Docket ID FTC-2023-0028, 

Solicitation for Public Comments on the Business Practices of Cloud Computing Providers (Mar. 22, 2023), 

https://www.regulations.gov/docket/FTC-2023-0028. 116 See, e.g., FTC Office of Technology, Lurking Beneath the Surface: Hidden Impacts of Pixel Tracking (Mar. 16, 

2023) (identifying research questions arising out of the technology at issue in recent privacy settlements), 

https://www.ftc.gov/policy/advocacy-research/tech-at-ftc/2023/03/lurking-beneath-surface-hidden-impacts-pixeltracking. 
37

and the stature of the Commission to engage the public and relevant experts to highlight key 

trends and encourage best practices.

VI. CONCLUSION

The FTC continues to seek to fulfill its broad mission using the range of tools Congress 

afforded us. The agency will continue to anticipate and respond to changes in the marketplace 

and adapt as needed.

Additional resources from Congress would allow us to better ensure open, competitive, 

and fair markets on behalf of consumers, workers, and honest businesses. We look forward to

continuing to work with the Subcommittee and Congress, and I am happy to answer your 

questions.