FTC Noncompete Ban in Jeopardy, Likely Unlawful
On July 3, 2024, a federal district court in Dallas ruled that the Federal Trade Commission (“FTC”) likely exceeded its authority when it enacted a nationwide noncompete ban. The court noted, “The text, structure, and history of the FTC Act reveal that the FTC lacks substantive rulemaking authority with respect to unfair methods of competition.” The court also found “there is a substantial likelihood the [FTC’s] Rule is arbitrary and capricious because it is unreasonably overbroad...
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