Ferguson rejects FTC authority for the nationwide noncompete rule
Andrew N. FergusonFTC commissioner at the time, joined by Melissa Holyoak
Ferguson argues that the rule exceeds the FTC's lawful authority regardless of policy wisdom.
“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.”
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.
Source and context
Original text
About this source
Ferguson argues the rule is unlawful regardless of its policy merits. Melissa Holyoak joins the dissent.
Archived copy (opens in a new tab)Before the quotation
Ferguson describes the rule as the most extraordinary assertion of authority in the FTC's history.
After the quotation
He dissents on statutory, constitutional and administrative-law grounds.
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. Ferguson expressly rejects its lawfulness, without necessarily defending every noncompete agreement.
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Read the full caseKhan defends rulemaking authority
“The Commission has the authority to promulgate this rule, based on the plain text of the FTC Act, case law, and statutory history.”Read statement
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The Dispute Index. "Ferguson rejects FTC authority for the nationwide noncompete rule". First published: 2026-10-16. Last updated: 2026-10-16. https://disputeindex.com/events/5782-ferguson-argues-that-the-rule-exceeds-the-ftc