Commissioner Rohit Chopra, a Democrat, wants the Federal Trade Commission (FTC) to write rules defining when noncompete agreements for employees are permissible. He raised the issue last Thursday, September 6, in comments filed ahead of the FTC policy hearings. Chopra believes the FTC should evaluate using the “neglected” power of rulemaking to better enforce antitrust law.
“I see major benefits to the FTC engaging in rulemaking under “unfair methods of competition,” even if the conduct could be condemned under predecessor antitrust laws.” Chopra said on September 6 during the 21st Century hearings. “Rulemaking can create value for the marketplace and benefit the public on all of these fronts.”
“Rulemaking would serve to advance clarity and certainty about what types of conduct constitute – or do not constitute – an ‘unfair method of competition.’ Commission studies of specific industries and business practices would guide which practices the FTC should use rulemaking to address. Indeed, as an enforcer and regulator across industries, the Commission is uniquely positioned to identify practices that it determines are anticompetitive.”
Read FTC Comment here: Gov FTC
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