• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Economy House, Senate Republicans team up to crack down on FTC for destroying documents related to congressional probe
Economy

House, Senate Republicans team up to crack down on FTC for destroying documents related to congressional probe

by August 17, 2023
by August 17, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

FIRST ON FOX — Top Republicans on Capitol Hill are vowing a crackdown on the Federal Trade Commission (FTC) for allegedly destroying documents related to a congressional probe.

‘By deleting documents, the FTC likely violated federal law. It also impeded Congressional oversight of the FTC’s recent, unprecedented actions, including its proposed rule banning non-compete clauses,’ Sen. Ted Cruz, a Texas Republican and ranking member on the Senate Commerce, Science, and Transportation Committee, wrote in a letter to FTC Chair Lina Khan, which was dated for Thursday and shown to Fox News Digital ahead of its release.

‘Congress and the public deserve an explanation of why the FTC improperly destroyed records, what records it improperly destroyed, and what steps will be taken to ensure it never happens again,’ Cruz wrote, joined by Rep. Jim Jordan, an Ohio Republican and chairman of the House Judiciary Committee, and Rep. James Comer, a Kentucky Republican and the chairman of the House Committee on Oversight and Accountability.

The letter by Republican legislators comes about a year and a half after the FTC’s in-house watchdog, the Office of Inspector General (OIG), found multiple failure’s in the FTC’s record-keeping process. 

The Republicans allege that the FTC ‘improperly deleted’ documents that Jordan had requested in relation to the agency’s new rule that would ban private-sector employers from requiring workers to sign noncompete clauses that restrict them from working for competitors or starting new businesses that offer similar services for a period of time.

Jordan in February said the rule would wipe out roughly 30 million existing noncompete agreements, and while the FTC highlights estimated benefits of the rule, it made little effort to quantify the costs, according to Jordan.

Jordan said the rule ‘exceeds [the commission’s] delegated authority and imposes a top-down, one-size-fits-all approach that violates basic American principles of federalism and free markets.’

Jordan sought at the time, among other things, documents related to the litigation risks due to the rulemaking, economic analysis related to the rulemaking, and communications between the FTC and third parties about the rulemaking.

In May, the FTC informed House Judiciary Committee staff that it had ‘deleted material likely responsive to the Committee’s requests,’ including records of the employee on detail from the Consumer Financial Protection Bureau who led the FTC’s rulemaking.

‘The FTC’s deletion of documents responsive to a Congressional inquiry underscores the OIG’s conclusion in 2022 that ‘the FTC has not prioritized records management nor embedded it as a value in the agency’s culture,’’ the top Republicans wrote.

‘Moreover, it suggests that the agency is not committed to complying with the law, and that it may continue to delete records that are relevant to ongoing investigations. This is not how a federal agency should be run,’ they wrote.

The GOP trio notes in their letter that ‘Federal law imposes important recordkeeping requirements on the FTC.’

The Federal Records Act (FRA) requires the head of every federal agency to ‘make and preserve records’ about the agency’s ‘functions, policies, decisions, procedures, and essential transactions.’ It further requires agency heads to ‘establish and maintain’ a ‘records scheduling’ process, pursuant to which the agency must identify the records it has, determine how long each type of record is deemed valuable, and when there is no longer a need for them at the agency, request authority to either legally destroy the records or transfer them to the National Archives.

The FRA explains that such recordkeeping is necessary to ‘furnish the information necessary to protect the legal and financial rights of the Government and of persons directly affected by the agency’s activities,’ the lawmakers note.

‘It turns out the FTC has struggled to comply with the law,’ they write.

In a February 2022 memo, the OIG ‘alert[ed] FTC leadership’ to two key issues with the FTC’s records management processes: the agency (1) was not adhering to the National Archives and Records Administration (‘NARA’) records scheduling requirements and (2) had not set up ‘automated practices for properly storing and timely disposing of records in a manner across the agency.’

The lawmakers note that the OIG found it ‘[p]articularly noteworthy’ that ‘the Bureau of Competition and the Bureau of Consumer Protection do not use a comprehensive case management system for their case files’ and that FTC management had ‘no plans’ to store files on the FTC’s cloud platform rather than various shared drive folders.

‘To date, the FTC has not adequately addressed concerns about its record retention policy,’ the Republicans say in the letter.

‘The agency has not explained how documents were deleted related to a rulemaking that the FTC should have known would face litigation, FOIA requests, and Congressional oversight. In addition, the FTC has not explained how federal records from senior advisors (sic) at the FTC could be deleted, regardless of whether there were litigation or other holds placed on the documents.’

The FTC did not immediately return Fox News Digital’s request for comment on the letter.

The Republicans requested an exhaustive list of communications from the agency, including what documents the FTC may have deleted in relation to 12 additional congressional oversight probes into the agency.

Brianna Herlihy is a politics writer for Fox News Digital.

This post appeared first on FOX NEWS
You Might Also Like
  • Trump ‘really not thinking about’ Haley after South Carolina victory, says he’s focused on beating Biden
  • Former Burisma lawyer registers as foreign agent more than seven years later amid Hunter Biden investigations
  • Top House GOP group urges Speaker Johnson to work with senators on border security
  • Now comes the hard part: Getting the debt ceiling deal through Congress
Share
0
FacebookTwitterPinterestWhatsapp

previous post
House Democrats launch ‘working group’ on artificial intelligence
next post
2024 Watch: Tim Scott laying out $8 million to run ads in key early GOP presidential nominating states

You may also like

Kansas Republican Sen. Moran says ‘cyber-criminal’ stole nearly $700K from...

January 21, 2023

New report highlights ‘booming’ transgender surgery industry that is raking...

July 2, 2024

The Speaker’s Lobby: The Hitchhiker’s Guide to a possible government...

September 21, 2023

Bold prediction: What the Senate GOP campaign chair says about...

September 8, 2024

Todd Chrisley teaching finance classes in prison to reduce sentence...

October 4, 2023

German space commander warns Russian nuclear weapon could destroy ‘global...

February 19, 2024

Key moderate Republican Don Bacon fends off state GOP-backed populist...

May 15, 2024

SEEING DOUBLE: AOC lashes out at Twitter parody account ‘impersonating...

May 31, 2023

Stormy alleges one-night stand with Trump, agreed to lie for...

May 8, 2024

Markets Feed the Poor, Government Creates Them – The Misguided...

December 7, 2022

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,633 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,321 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,303 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    AOC suggests cutting off aid to...

    February 23, 2024

    DNC’s hellish abortion rituals celebrate death,...

    August 21, 2024

    Trump’s critical VP pick: 5 key...

    May 7, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here