ADventures in Law

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Andrew Ferguson took over as FTC Chairman on Jan. 21. Nearly two months in, and Chairman Ferguson’s FTC is slowly taking shape. Consumer protection complaints have begun to be filed (although of course these matters were in the works for quite some time), guidance has been issued and a new commissioner – Mark Meador – seems to be a done deal. A discussion of some key FTC actions over this period helps shed light on what the agency may look like in the coming years.

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Feb. 20, 2025 – FTC Launches Inquiry on Tech Censorship

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Chair Ferguson has been quite vocal about his focus on reining in “Big Tech” censorship. On Feb. 20, we got an initial glimpse into what this could mean, with the FTC’s launch of a public inquiry to “better understand how technology platforms deny or degrade users’ access to services based on the content of their speech or affiliations.” The Request for Information calls for “public submissions from anyone who has been a victim of tech censorship, from employees of tech platforms, or from anyone else who can shed light on these practices and the way in which they may violate the law.” More than <a href="https://www.regulations.gov/docket/FTC-2025-0023/comments" target="_blank" rel="noreferrer noopener">1,000 comments</a> have been filed already.

Feb. 26, 2025 – FTC Launches Joint Labor Task Force

On Feb. 26, the FTC launched a joint labor task force to “root[] out and prosecut[e] deceptive, unfair, and anticompetitive labor-market practices that harm American workers.” The directive highlights various practices that may be considered harmful by Ferguson’s FTC such as agreements prohibiting worker competition, deceptive job advertising, and Diversity, Equity, and Inclusion employment metrics.

Mar. 3, 2025 – Blackstone Legal Temporary Restraining Order

On Mar. 3, a federal court temporarily halted the operations and froze assets of a purported phantom debt collection scheme and its operators. According to the FTC, the scheme involved calling consumers or sending them warning and collection letters related to nonexistent debts. The victims would then be warned about or threatened with some nonexistent penalty, wage garnishment, or pending legal action to pressure them into sending money to the operators of the scheme.

Mar. 7, 2025 – Growth Cave, LLC Temporary Restraining Order

On Mar. 7, a federal court temporarily halted the operations of “Growth Cave” – a purported business opportunity and credit repair scam. Regarding the business opportunity scheme, the FTC alleged that Growth Cave’s operators promised a profit guarantee with little effort. In most cases, the consumers made no income from the business opportunity, instead owing thousands to Growth Cave or lenders. Regarding the credit repair scheme, the FTC’s complaint alleged that Growth Cave would charge consumers $6,800 in return for credit repair services and zero percent interest business loans. Instead of receiving the promised services, the consumers would then be signed up for multiple business credit cards.

On Mar. 10, Chris Mufarrige, the FTC’s new Director of the Bureau of Consumer Protection issued a <a href="https://www.ftc.gov/business-guidance/blog/2025/03/did-your-business-receive-cid-ftc-means-business" target="_blank" rel="noreferrer noopener">business blog</a> titled “Did your business receive a CID? The FTC means business.” The blog contains general guidance on what a civil investigative demand (CID) is and what to do upon receipt. The guidance notes that while the FTC wants to work cooperatively with CID recipients to minimize business impacts and promote efficiency, “preventing harm to consumers is [the FTC’s] priority and [the FTC] intends to move cases in a timely matter.” Having the Director author this piece serves as an important reminder that investigations and enforcement will continue to be the FTC’s bread and butter.

As Chairman Ferguson’s FTC continues to take shape, these actions showcase what the agency may look like over the next few years. As evidenced by the complaints, it is likely that the FTC will be returning to its “cop on the beat” role in preventing traditional deceptive business practices. Additionally, a commitment to labor practices seems to be a pronounced concern of Ferguson’s FTC. Finally, social issues such as Big Tech censorship still seem to be at the front of Chair Ferguson’s mind, and it remains to be seen what that will consist of beyond the current Request for Information.

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