What to Expect from the FTC for Earnings Claims in 2025
Chip Cooper
eCommerce Attorney. I help marketers, advertisers & agencies solve their FTC earnings claim compliance problem for a fixed, flat fee. Get new strategies by downloading my Earnings Claim Guide and newsletter (Link Below)
The Trump FTC Will be Different, But in What Way?
How the FTC Works
??? *? The FTC is run by five Commissioners, each serving seven-year terms.
??? *? The President of the United States appoints the FTC Chair.
??? *? The Chair directs the agenda and oversees daily operations of the FTC; however, decisions regarding enforcement actions and policy initiatives require a majority vote (3 Commissioners).
The Republican Majority
This will be the Republican majority in the FTC.
? ??*?? Andrew Ferguson will be the Chair. He served in the Republican minority in the Biden FTC.
??? *? Melissa Holyoak, who also served in the Republican minority in the Biden FTC, will remain as Commissioner.
? ??*?? Trump named Mark Meador as the third Republican Commissioner.
What to Expect Generally?
?? ?*??One hot item is the non-compete ban which is currently being litigated.
??? *? Expect the Trump FTC to abandon the FTC’s appeals in the litigation, resulting in the non-compete ban being effectively dead.
What About Earnings Claims and the Proposed Rulemaking for the Biz Opp Rule?
??? * ?The Biden FTC proposed an expanded definition of “earnings claims.”
??? ?*? The Biden FTC also proposed an expansion of the Biz Opp Rule to regulate virtually all money-making opportunities which, if passed, would impose additional limitations on the sale of any money-making opportunity.
??? ?*? A safe bet is that the Trump majority’s priorities may be elsewhere, hopefully resulting in a “slow death” for the expanded earnings claim definition and Biz Opps Rule similar to the expected “slow death” of the non-compete ban discussed above.
Takeaway
??? *? Generally, “don’t count your chickens before they hatch” is sound advice.
??? *? However, one clue to the outcome for 2025 is that both Republican Commissioners Andrew Ferguson and Melissa Holyoak voted against the expanded Biz Opp rule in 2024 for the Republican minority on the Biden FTC. Their rationale: most likely they believed the proposed expansion was regulatory overreach.
For Informational purposes only; not legal advice