Jim Jordan Warns FTC’s Lina Khan: ‘Stop Investigating Civil Rights Matters’
(Photo by Mark Wilson/Getty Images)
House Judiciary Committee chairman Jim Jordan (R-OH) issued a stern warning to Federal Trade Commission (FTC) chair Lina Khan, urging her to halt the agency’s involvement in civil rights cases. Alongside Rep. Cathy McMorris Rodgers (R-WA), chairwoman of the House Committee on Energy and Commerce, Jordan sent Khan a letter Thursday criticizing the FTC’s ongoing lawsuit against Coulter Motor Company, a dealership in Tempe, Arizona, that sells Buick and Cadillac vehicles.
The FTC’s lawsuit accuses Coulter Motor Company of using “deceptive” online pricing tactics and imposing illegal junk fees. More controversially, the agency claims that the dealership charged Latino customers an average of $1,200 more in interest and fees compared to other customers. Jordan and Rodgers argue that by pursuing these allegations, the FTC is overstepping its authority and acting as a de facto civil rights agency—an area they assert is beyond the commission’s jurisdiction.
In their letter, the lawmakers cited concerns raised by FTC Commissioners Andrew Ferguson and Melissa Holyoak. “Both Commissioners raised concerns not only because the FTC Act does not contemplate such claims, but the FTC making up such a claim and including it as part of a settlement agreement can set a dangerous precedent,” Jordan and Rodgers wrote.
While they acknowledged the FTC’s role in enforcing the 1974 Equal Credit Opportunity Act (ECOA), the lawmakers argued that this authority does not extend to challenging actions as “unfair discrimination” under the FTC Act. They maintained that such claims fall outside the FTC’s regulatory scope and should not be pursued as part of its mandate.
Jordan and Rodgers also referenced the Supreme Court’s recent decision to overturn the Chevron deference doctrine, which previously required courts to defer to executive agencies’ interpretation of their own rulemaking powers. They warned that this ruling makes it more likely for courts to challenge the FTC’s authority if it continues policing discrimination issues, as judges can now more easily deny such powers.
Lina Khan, known for her aggressive stance on antitrust issues and a favorite among progressive activists, has become a polarizing figure within the Biden administration. She has spearheaded efforts to break up big tech monopolies, drawing both praise and criticism. Some wealthy Democratic donors and political allies have reportedly pressured Vice President Kamala Harris to consider replacing Khan if she is elected president, signaling internal divisions over her leadership.
As the FTC continues its aggressive regulatory approach, Khan faces increasing scrutiny not only from Republican lawmakers like Jordan and Rodgers but also from within her own political circle. The debate over the agency’s reach highlights the tension between enforcing consumer protection and civil rights within the confines of its established mandate.
