In making this finding, the Court determined that the rulemaking authority regarding unfair methods of competition under Section 6(g) of the FTCA does not extend to creation of substantive rules, but is instead limited to “housekeeping” or procedural rulemaking. Accordingly, the Court found that ...
Moreover, noncompetes promote pro-competitive interests far more effectively than alternatives such as trade-secret laws or nondisclosure agreements. By relying on noncompetes over nondisclosure agreements or trade-secret law, “employers avoid the difficulties of proving an actual or threatened misapprop...
[20] Here, even if Congress had intended to delegate to the FTC the power to make rules regarding employee non-competes, the vague reference to “unfair methods of competition” in Section 5 of the FTC Act is arguably far too broad to meet this standard. Third, the doctrine of “Chevron...
Although the FTC has authority to make adjudicative rulings on a case-by-case basis, Judge Brown found that the plaintiffs were likely to prevail on their claim that the FTC lacks authority to promulgate substantive rules regarding unfair methods of competition. In other words, Judge Brown ...
critics — claimed that (1) the FTC lacks authority to engage in rulemaking ofsubstantivecompetition rules (as opposed toprocedural rules); (2) the rule is barred by the “major questions doctrine”; and (3), it is an impermissible delegation of legislative authority under the nondelegatio...
Supreme Court, which in recent years has shown less deference to rules issued by federal agencies that are not clearly supported by express statutory language. In the meantime, however, employers who use non-competes with their employees are advised to consider submitting comments to the FTC ...
interpretation of its own powers to support rulemaking.5Now the FTC has revived the same theory to support UMC rulemaking. President Joe Biden has urged the FTC to revive the aggressive posture it took during the 1970s, and Chair Lina Khan has signaled that other UMC rules ar...
is less likely to be subject to the kind of acute, ongoing harms currently being suffered by other workers subject to existing non-competes and because commenters raised credible concerns about the practical impacts of extinguishing existing non-competes for senior executives,” states the r...
The plaintiffs established a likelihood of success on prevailing on its two primary arguments: 1) the FTC does not have statutory authority to issue rules defining unfair methods of competition and 2) the FTC's actions were arbitrary and capricious. ...
Still, the FTC is banning new noncompetes for senior executives on the grounds that the agreements stifle competition and discourage employees from creating new businesses, potentially harming consumers. The idea of using noncompetes to keep business information out of the hands of rivals has prolifer...