FTC Chairman Andrew Ferguson testified before the House Appropriations Committee's Financial Services and General Government Subcommittee on May 15 to discuss the agency's consumer protection and competition efforts and budget. Overall Chairman Ferguson stated that he is focused on "[v]igorous enforcement" rather than rulemaking. In discussing the FTC's consumer protection mission, he detailed the agency's work to address fraud, police data security and privacy practices, and help workers, entrepreneurs, and small businesses. He also previewed the agency's focus on enforcement advancing Administration policy priorities, including the Better Online Ticket Sales (BOTS) Act and the recently enacted Take It Down Act.
Below we discuss key takeaways.
Budget Cuts and Priorities
In addressing the FTC's budget, the Chairman said the agency is undertaking several cost-saving endeavors to align with President Trump's vision "to reduce the size of federal government to no larger than necessary to fulfill its statutory mandates." He noted that the FTC in the current Administration has already reduced spending by downsizing its workforce from 1,315 to 1,221 personnel with plans for additional reductions "to a Full-Time Employee level that will be the lowest it has been in 10 years" while "maintaining a workforce that can deliver for the American people." Looking ahead, the FTC will prioritize funding for expert witness costs necessary to support complex litigation and for infrastructure to manage big data environments and develop advanced analytics capabilities.
Live Event Ticketing Industry Enforcement
In alignment with President Trump's March 31 Executive Order titled "Combating Unfair Practices in the Live Entertainment Market," the Chairman stated that the Commission will "rigorously enforce" the BOTS Act in collaboration with state Attorneys General (AGs) and state consumer protection offices. The BOTS Act targets the practice of automated ticket purchasing and reselling using "bots" or automated systems intended to circumvent technological control measures used by online ticket issuers. Chairman Ferguson also indicated in his testimony that the Commission will enforce the Unfair and Deceptive Fees Rule, which the previous Administration called the Junk Fees Rule. That rule went into effect on May 12 and requires companies that offer ticket services for live-event tickets (or short-term lodging) to disclose a "Total Price" that includes mandatory fees. The FTC will also work with the Department of the Treasury and the Department of Justice (DOJ) to prepare a report describing the actions taken to address unfair practices in the live concert and entertainment industry and recommend additional regulations or legislation needed to protect consumers. The report will likely be informed by responses to a joint FTC/DOJ Request for Information about unfair and anticompetitive practices in the ticketing industry.
AI
Chairman Ferguson discussed the importance of empowering innovation in emerging fields like artificial intelligence (AI). The Commission is focused on "using circumspect and appropriate enforcement of existing laws" to prevent fraudulent activity related to AI and has not indicated plans to create new rules specific to the technology. The Chairman stated that combating AI-related fraud empowers innovation while ensuring consumers gain the benefit of new technologies. As such, the Chairman highlighted recent enforcement actions against companies that made deceptive claims about AI to further their "business opportunity" schemes or made deceptive promises to consumers regarding AI products without sufficient evidence that the AI product could deliver effective results.
Chairman Ferguson also noted that the Commission is preparing to "serve as an effective partner in this Administration" by enforcing legislation supported by the Office of the First Lady, including the widely bipartisan Take It Down Act. The Act, signed into law May 19, requires platforms to remove posts of non-consensual intimate images, including AI deepfakes. Notably, the Act also expands FTC jurisdiction to enforce against nonprofits that violate this law.
Protecting Children and Teens
The Chairman noted in his testimony that beyond enforcing the Children's Online Privacy Protection Act (COPPA) and COPPA Rule, which we summarize here, the Commission is exploring other ways to protect children online. On June 4, the FTC will hold a virtual workshop to "discuss how Big Tech companies impose addictive design features, erode parental authority, and fail to protect children from exposure to harmful content." The workshop, titled "The Attention Economy: How Big Tech Firms Exploit Children and Hurt Families," will feature parents, child safety experts, and government leaders. Experts will discuss potential approaches to protect kids online, including age verification and parental consent requirements. Chairman Ferguson and Commissioners Melissa Holyoak and Mark Meador plan to deliver remarks, along with Senators Marsha Blackburn (R-TN) and Katie Britt (R-AL).
Privacy
The Chairman summarized the agency's work to address unlawful privacy practices by enforcing cases "[w]here companies have misrepresented their data collection and use practices to consumers, or where data practices have caused substantial injury to consumers." This was a noticeably brief portion of Chairman Ferguson's testimony, in which he did not suggest any specific privacy initiatives beyond protecting children's privacy, though we expect the FTC to continue with privacy investigation and enforcement activities.
Protecting Workers, Entrepreneurs, and Small Businesses
In February 2025, the FTC launched a joint Labor Markets Task Force across its bureaus and offices with the goal of protecting American workers. The Task Force will prioritize efforts to address deceptive, unfair, and anticompetitive labor-market practices and will address a range of employment-related practices that the FTC will scrutinize in the new Administration. We discuss the Task Force in more depth here.
Chairman Ferguson also noted the FTC's work with franchise issues, including enforcement of the Franchise Rule, policy initiatives, and consumer and business education. Specifically, the Franchise Rule requires franchisors to disclose certain information to prospective purchasers necessary to adequately weigh the risks and benefits of such an investment. These disclosures include information about the offered franchise, its officers, and other franchisees. The Chairman highlighted several recent enforcement actions for alleged violations of the Franchise Rule, including an action against a coffee shop franchise and a joint enforcement action with the DOJ against a fast-food franchise.
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