The Federal Trade Commission (FTC) announced the launch of a new joint task force focused on halting deceptive, unfair and anticompetitive labor market practices to protect American consumers in their roles as workers.
The Bureau of Competition, Bureau of Consumer Protection, Bureau of Economics and Office of Policy Planning will join forces to combat deceptive, unfair and anticompetitive practices, which the agency said are widespread and negatively affect workers across all types of industries.
"[W]hile all Americans are harmed by unfair business activities that raise the prices they pay when they shop, their ability to earn a living is equally – if not more – harmed by deceptive, unfair and anticompetitive employer labor practices that drive down what they earn for their labor," FTC Chair Andrew N. Ferguson wrote in a memorandum. "Protecting consumers will always be central to the FTC's mission and statutory mandate, but it is important to remember that the FTC's authority includes protecting the same American consumers in their roles as workers."
Examples of harmful practices include no-poach, nonsolicitation or no-hire agreements; wage-fixing agreements; noncompete agreements; labor-contract termination penalties; labor market monopsonies; collusion or unlawful coordination on DEI metrics; harming gig economy workers; deceptive job advertising; deceptive business opportunities; misleading franchise offerings; harmful occupational licensing requirements; and job scams.
The joint task force will prioritize the investigation and prosecution of deceptive, unfair and anticompetitive labor market conduct and harmonize the different Bureaus' methods and procedures.
In addition, the task force will create an information-sharing protocol, promote research, engage in public outreach and identify opportunities for advocacy on legislative or regulatory changes that would remove barriers to labor market participation, mobility and competition.
The task force will include at least three members from each Bureau and one member from the Office of Policy Planning, co-chaired by one representative from each Bureau. The full task force will meet monthly to assess the status of all ongoing labor matters and will report to the chair on a quarterly basis.
To read the memorandum from the FTC chair, click here.
Why it matters: In the memorandum, the FTC identified examples of employer conduct that fall within the agency's jurisdiction, effectively putting employers on notice that such conduct may be subject to FTC scrutiny and investigation.
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