Khan defends rulemaking authority
Lina KhanFTC chair at the time, in a statement joined by Rebecca Kelly Slaughter and Alvaro Bedoya
Khan argues that the FTC Act authorizes the noncompete rule.
“The Commission has the authority to promulgate this rule, based on the plain text of the FTC Act, case law, and statutory history.”
Original text
Where this statement fits
Lina Khan defends the FTC's noncompete ban; Andrew Ferguson challenges its authority
The FTC adopted a nationwide noncompete rule in April 2024. Lina Khan defended its benefits and the agency's legal authority. Andrew N. Ferguson argued that Congress had not authorized the rule, regardless of its policy merits. A court blocked enforcement, and the FTC later took steps to dismiss its appeals. The rule is not in effect or enforceable.
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Original text
About this source
Khan, joined by Slaughter and Bedoya, argues that the FTC Act, precedent and statutory history authorize the rule.
Archived copy (opens in a new tab)Before the quotation
Khan answers Commissioners Ferguson and Holyoak in a statement dated December 31, after the court had blocked enforcement.
After the quotation
She cites Section 6(g) and the National Petroleum Refiners decision.
How this statement is classified
The label describes this statement's response within the context above.
Why this label?
The reference point is the FTC's nationwide rule. Khan expressly defends its legal authority.
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More from this case
Read the full caseFerguson rejects FTC authority for the nationwide noncompete rule
“Whatever the Final Rule’s wisdom as a matter of public policy, it is unlawful. Congress has not authorized us to issue it. The Constitution forbids it. And it violates the basic requirements of the Administrative Procedure Act.”Read statement
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The Dispute Index. "Khan defends rulemaking authority". First published: 2026-10-16. Last updated: 2026-10-16. https://disputeindex.com/events/5781-khan-argues-that-the-ftc-act-authorizes-the