Supreme Court strikes down FTC member removal protections

The U.S. Supreme Court on Monday dismantled a nearly century-old legal protection for members of the Federal Trade Commission, ruling that their removal safeguards are unconstitutional. This landmark decision significantly expands the U.S. president's authority over certain independent agencies.

For decades, Congress had shielded officials on multi-member commissions from being fired at will by the president. The "for cause" removal standard, typically requiring evidence of inefficiency, neglect of duty, or malfeasance, was established in a 1935 Supreme Court case, Humphrey's Executor v. United States. This precedent protected officials from arbitrary dismissal and preserved agency independence from political pressure.

However, in the case Trump v. Slaughter, the court's conservative majority overturned the 1935 ruling. This marks the end of a long-standing New Deal-era precedent and is anticipated to have broad implications. Many of the more than two dozen multi-member agencies created by Congress have similar removal protections for their leaders, which could now be vulnerable.