Trump's Illegal FTC Firings Directly Threaten Your Money and Privacy

When President Trump fired two Federal Trade Commission (FTC) commissioners, Alvaro Bedoya and Rebecca Slaughter, last month, it wasn’t just a bureaucratic reshuffle. It was a direct assault on the very institution tasked with shielding Americans from scams, fraud, and corporate overreach. The move, executed without cause, sent shockwaves through the halls of consumer advocacy. California Attorney General Rob Bonta, joined by 20 other state attorneys general, has stepped into the fray, filing an amicus brief to challenge what they call an illegal power grab. Their argument is simple yet profound: the FTC’s independence is not negotiable, and its erosion threatens every American’s financial security.

For over a century, the FTC has stood as a bulwark against deceptive practices, recovering billions for consumers fleeced by fraudsters and monopolistic corporations. Its mission transcends party lines, rooted in the belief that markets thrive only when they’re fair. Bedoya, a digital privacy expert, and Slaughter, a fierce advocate for robust consumer protections, were pivotal in steering the agency toward tackling modern threats like text message scams and unchecked corporate mergers. Their abrupt dismissal, in defiance of federal law, signals a troubling shift toward politicizing an agency designed to be above the fray.

This isn’t just about two commissioners. It’s about the principle that no president should bend an independent agency to their will. The FTC, with its bipartisan structure and staggered seven-year terms, was crafted by Congress to resist such interference. Trump’s actions, however, suggest a vision where political loyalty trumps public interest, a stance that could leave consumers vulnerable to the very predators the FTC was created to stop.

Bonta and his coalition are sounding the alarm, and their fight is one every American should rally behind. The stakes are tangible: unchecked scams, skyrocketing prices from monopolies, and a digital landscape where privacy is a luxury, not a right. This is personal. It’s about the money in your pocket and the safety of your data.

The FTC’s role in American life is hard to overstate. Last year alone, text message scams drained $470 million from consumers, a fivefold increase since 2020. Fake package delivery alerts, sham job offers, and fraudulent bank notices flooded inboxes, preying on the distracted and the desperate. The FTC has been relentless in countering these threats, shutting down 13 websites impersonating the agency and pursuing enforcement actions against violators. Its partnerships with states, like the recent push to block the Kroger-Albertsons merger, have saved shoppers from price hikes driven by corporate consolidation.

Under Bedoya and Slaughter, the FTC sharpened its focus on digital privacy, a frontier where consumers are increasingly at risk. In January, the agency finalized updates to the Children’s Online Privacy Protection Rule, requiring parental consent for third-party advertising and curbing the monetization of kids’ data. These protections, painstakingly crafted, reflect the FTC’s commitment to adapting to a world where personal information is a commodity. Losing commissioners with this expertise isn’t just a setback; it’s a betrayal of the public trust.

Contrast this with the argument from Trump’s defenders, who claim the president has the right to shape agencies to reflect his agenda. They point to recent Supreme Court rulings, like Seila Law v. CFPB, which questioned limits on presidential removal powers. But this view ignores a century of precedent, from Humphrey’s Executor in 1935 to modern cases, affirming that independent agencies like the FTC exist to serve the public, not the White House. The Federal Trade Commission Act is clear: commissioners can only be removed for inefficiency, neglect, or malfeasance. Trump’s firings meet none of these criteria, making them a blatant violation of the law.

The broader context is equally alarming. Trump’s February executive order, ‘Ensuring Accountability for All Agencies,’ seeks to pull independent bodies like the FTC under White House control, requiring their regulations and budgets to align with presidential priorities. This isn’t efficiency; it’s coercion. Groups like Common Cause have decried the order as illegal, arguing it guts the statutory independence Congress intended. If successful, this power grab could turn the FTC into a political pawn, swayed by whichever party holds the Oval Office.

Think about the single mother who lost $500 to a text scam promising a job, or the retiree whose savings vanished in a fake investment scheme. These aren’t hypotheticals; they’re the faces of the FTC’s work. In 2024, impersonation scams targeting businesses and government cost consumers $2.95 billion. Without a fully independent FTC, these numbers will climb. Fraudsters don’t pause for political debates, and neither should the agency tasked with stopping them.

Antitrust enforcement, another FTC cornerstone, is equally at risk. The agency’s challenge to the Kroger-Albertsons merger, backed by state attorneys general, was a stand against grocery price gouging at a time when families are stretched thin. A politicized FTC might shy away from such fights, especially if corporate interests align with political allies. Even under new Chairman Andrew Ferguson, who has pledged to maintain some Biden-era merger guidelines, the loss of Bedoya and Slaughter tilts the agency toward a Republican majority less likely to prioritize consumer welfare over corporate freedom.

The legal battle now unfolding is a test of whether the FTC can remain a guardian of fairness. Bonta and his coalition lean on Humphrey’s Executor, a Supreme Court ruling that has protected agency independence for nearly a century. Trump’s team, emboldened by recent rulings questioning such protections, may push to overturn this precedent. If they succeed, the fallout will extend beyond the FTC, threatening agencies like the SEC and FCC, which also rely on insulation from political whims to function effectively.

The fight to reinstate Bedoya and Slaughter is more than a legal skirmish; it’s a defense of the idea that some institutions must stand above politics to serve the common good. Every dollar stolen by a scammer, every price hike from a monopoly, every violation of your privacy is a reminder of why the FTC matters. Bonta’s coalition, spanning 21 states, is a testament to the urgency of this moment. Their amicus brief isn’t just a legal document; it’s a rallying cry for anyone who believes in fair markets and safe digital spaces.

Americans deserve an FTC that fights for them, not one that bends to the will of a single administration. The path forward lies in the courts, where judges like Amy Berman Jackson, who recently blocked a similar White House overreach, are holding the line. But the public must also demand accountability. Report scams, question mergers, and support leaders who prioritize your wallet over political games. The FTC’s independence is worth fighting for, because when it falls, we all pay the price.