Appeals court rejects Trump’s bid to fire Biden-appointed FTC member

A D.C. Circuit Court of Appeals panel reinstated FTC member Rebecca Kelly Slaughter, a Biden appointee, ruling that former President Trump's attempt to fire her without cause was unlawful. The court's 2-1 decision affirmed that Federal Trade Commissioners are protected from summary removal by the 1935 Supreme Court precedent *Humphrey's Executor*, which mandates removal only for 'inefficiency, neglect of duty, or malfeasance.' This ruling reinforces the independence of multi-member regulatory bodies like the FTC, contrasting with recent Supreme Court trends that have expanded presidential removal powers over other agency officials, though legal scholars anticipate *Humphrey's Executor* may eventually be revisited by the high court.

Analysis

The D.C. Circuit Court's reinstatement of FTC Commissioner Rebecca Kelly Slaughter reaffirms, for now, the legal independence of the commission from direct presidential control. The 2-1 ruling explicitly relies on the 1935 Supreme Court precedent *Humphrey's Executor*, which restricts the removal of commissioners to cases of 'inefficiency, neglect of duty, or malfeasance.' This decision is notable as it contrasts with a recent trend of Supreme Court rulings that have expanded presidential removal powers over other executive agency leaders. While this ruling maintains the current regulatory balance at the FTC, the article highlights significant underlying uncertainty; the dissenting opinion and the stated expectation among legal experts that the Supreme Court may eventually overturn the 90-year-old precedent signal potential for future structural changes. The stability of the FTC's independent, multi-member structure remains a key legal and political question, carrying long-term implications for the predictability of US regulatory enforcement.

Key Decisions for Investors

• Investors in sectors with high FTC oversight, such as technology and pharmaceuticals, should factor in the continuation of the current commission's assertive antitrust and consumer protection stance in the near term.
• Monitor legal dockets for any case that could bring the Humphrey's Executor precedent before the Supreme Court, as a ruling that overturns it would significantly increase the political volatility of regulatory enforcement across presidential administrations.
• The ongoing legal battle over agency independence introduces a long-term political risk factor that should be considered when evaluating investments in heavily regulated industries, as future administrations could wield more direct control over bodies like the FTC.