A federal court in Texas has thrown out the government’s ban on noncompete agreements that was set to take effect September 4.

In her ruling, Judge Ada Brown of the U.S. District Court for the Northern District of Texas wrote that the federal agency had overstepped its power when it approved the ban.

“The FTC lacks substantive rulemaking authority with respect to unfair methods of competition,” she wrote. "The role of an administrative agency is to do as told by Congress, not to do what the agency think[s] it should do.”

  • Got_Bent@lemmy.worldOP
    1·
    28 days ago

    I know the guy who brought this suit personally. Damn near worked for him years ago. What a dick. His entire business, hundreds of millions of dollars, is shady as fuck.

    Another domino from the Chevron decision falls.

    I still predict that the entire tax code will be up next as it’s driven by regulations written by the department of the Treasury. You know, a federal agency, and those no longer have any legal authority.

  • NaibofTabr@infosec.pubEnglish
    1·
    28 days ago

    “The FTC lacks substantive rulemaking authority with respect to unfair methods of competition,”

    Huh?

    Under this Act, the Commission is empowered, among other things, to (a) prevent unfair methods of competition, and unfair or deceptive acts or practices in or affecting commerce; (b) seek monetary redress and other relief for conduct injurious to consumers; © prescribe trade regulation rules defining with specificity acts or practices that are unfair or deceptive, and establishing requirements designed to prevent such acts or practices; (d) conduct investigations relating to the organization, business, practices, and management of entities engaged in commerce; and (e) make reports and legislative recommendations to Congress

    https://en.wikipedia.org/wiki/Federal_Trade_Commission_Act_of_1914

    https://www.ftc.gov/legal-library/browse/statutes/federal-trade-commission-act

    The literal text of the FTC Act says:

    Sec. 5. [15 U.S.C. 45] (a)(1) Unfair methods of competition in or affecting commerce, and unfair or deceptive acts or practices in or affecting commerce, are hereby declared unlawful. (2) The Commission is hereby empowered and directed to prevent persons, partnerships, or corporations, except banks, savings and loan institutions described in section 18(f)(3), Federal credit unions described in section 18(f)(4), common carriers subject to the Acts to regulate commerce, air carriers and foreign air carriers subject to the Federal Aviation Act of 1958, and persons, partnerships, or corporations insofar as they are subject to the Packers and Stockyards Act, 1921, as amended, except as provided in section 406(b) of said Act, from using unfair methods of competition in or affecting commerce and unfair or deceptive acts or practices in or affecting commerce.

    https://www.govinfo.gov/content/pkg/COMPS-388/uslm/COMPS-388.xml

    They are doing exactly what Congress told them to do.