In my consumer journalism work, I often write about what federal agencies are doing, or not doing, to help consumers.
Independent agencies, such as the Federal Trade Commission and the Federal Communications Commission, play a big role in consumer protection. They’re called independent because the president doesn’t have the authority to fire their leaders except for wrongdoing.
Until Monday.
The U.S. Supreme Court Monday issued its opinion in Trump v. Slaughter. The Slaughter decision overrules Humphrey’s Executor v. United States (1935), in which the court ruled that the Constitution allows Congress to create independent agencies whose commissioners can be removed only “for cause” – that is, for inefficiency, neglect of duty, or malfeasance while in office.
The Supreme Court took up the Slaughter case last year after President Trump fired former Federal Trade Commission, or FTC, Commissioner Rebecca Slaughter. In his email firing her, Trump didn’t cite any for cause removal criteria.
Independent agencies are the guardians of American consumers, workers, and investors, Robert Weissman, co-president of Public Citizen, an advocacy group, said in a statement, adding that they’ve held wealthy corporations that rip-off hardworking Americans accountable and forced dangerous products from the market.
“Having stripped most independent agencies of their independence, President Trump is already politicizing and weaponizing them, including agencies such as the FTC and the Federal Communications Commission (FCC), to the detriment of everyday Americans,” Weissman said.
The decision marks a troubling shift in the balance of power and risks turning independent consumer protection agencies into political pawns, Emily Peterson-Cassin, director of competition and market fairness at the Consumer Federation of America, an advocacy group, said in a statement.
“When the experts charged with policing fraud, protecting competition, and standing up to powerful corporations can be removed at will, consumers lose an important safeguard against abuse,” Peterson-Cassin said. “Americans deserve regulators focused on the facts, the law, and the public interest, not the preferences of whichever administration or well-connected special interests happen to hold power.”
Peterson-Cassin said the consequences of the decision will extend far beyond the FTC, putting the independence of agencies that protect the public’s health, safety, finances, and economic freedom squarely at risk.
In a separate action, the court ruled five to four to stop President Trump from firing Lisa Cook from the Federal Reserve Board of Governors.
President Trump has wanted to fire Cook because the Fed hasn’t responded to his demands to lower interest rates.
In a letter addressed to Cook that was posted to Truth Social late on Monday, Trump said he was removing Cook, who was nominated by former President Joe Biden, “effective immediately” with “sufficient cause” based on allegations that Cook lied on loan applications for two properties.
The justices, however, ruled that Cook hadn’t been given the chance to dispute those charges.
