Supreme Court Allows Temporary Removal of FTC's Democratic Commissioner

The Supreme Court has issued a temporary stay allowing the removal of Rebecca Kelly Slaughter, one of the Federal Trade Commission's (FTC) Democratic commissioners, marking a significant shift in the agency's composition and potentially its regulatory approach. This development comes amid ongoing legal battles and policy changes that could reshape the pharmaceutical and healthcare landscapes.

FTC Leadership Shake-up and Its Implications

Chief Justice John Roberts granted a temporary stay on Slaughter's return to her position, following her initial removal by President Donald Trump in March. The order, issued on Monday, gives Slaughter until September 15 to file a response. This decision temporarily maintains the FTC's conservative 3-0 panel, which has already begun to adopt different stances on regulation and healthcare industry oversight.

The removal of Slaughter challenges the long-standing precedent set by the 1935 Humphrey's Executor v. United States decision, which established statutory tenure protections for FTC commissioners. The Trump administration argues that the president has the authority to remove commissioners, citing an executive order signed earlier this year that outlines greater control over independent agencies.

Shift in FTC's Regulatory Approach

Under its new leadership, the FTC has demonstrated a marked change in its regulatory philosophy, particularly concerning healthcare and pharmaceutical industries:

1. The commission applauded the rescindment of a Biden order that called for stronger antitrust enforcement, specifically targeting hospital consolidation in rural communities, patent laws in the prescription drug market, and potential monopoly abuses among health insurers.

2. The FTC has shifted its stance on employer noncompete agreements, moving away from a proposed sweeping ban to a case-by-case enforcement approach. The commission voted 3-1 to withdraw from a pending appeal for the stalled rule on noncompetes, with Slaughter dissenting.

3. A new probe has been launched into claims of "deceptive marketing" by healthcare providers offering gender-affirming care services to minors, aligning with a broader multi-agency campaign against such services.

These policy shifts signal a potential reduction in regulatory pressure on pharmaceutical companies and healthcare providers, which could have far-reaching implications for industry practices and patient care.