Jordan and McMorris Rodgers claim FTC head violated ethics guidelines in Meta case.

House Committee Chairs Accuse FTC Chairwoman of Ethical Violations

Two influential heads of committees in the House of Representatives have leveled serious accusations against Federal Trade Commission (FTC) Chairwoman Lina Khan. They claim that Khan failed to disclose and adhere to the recommendations of the agency’s ethics representatives.

House Judiciary Chairman Jim Jordan and House Energy and Commerce Committee Cathy McMorris Rodgers made the announcement on Wednesday, stating that they are launching an investigation into Khan’s compliance with federal ethics guidance in the Meta v. Within case. This case involved Khan’s push to prevent Facebook’s parent company from acquiring Within, a virtual reality fitness company, due to antitrust concerns. It is alleged that Khan not only disregarded the agency’s ethics recommendations but also attempted to deceive others about the matter.

Failure to Disclose Key Recommendation Raises Concerns

During the investigation, Rodgers specifically asked Khan if there were any instances where she had not followed the guidance of the FTC’s Designated Agency Ethics Official (DAEO). Khan responded that there were no such instances. However, a Bloomberg report published on June 16 revealed that the DAEO had indeed recommended Khan’s recusal from the Meta case to avoid any appearance of partiality. Khan failed to comply with this recommendation, and her response to Rodgers omitted this crucial information.

The omission of the DAEO’s recommendation by Khan raises serious questions about her commitment to the fair and impartial administration of the FTC’s authorities, as highlighted by the two committee chairs in their joint statement.

Request for Transcribed Interviews and Oversight

In addition to the investigation, Chairman Jordan has requested transcribed interviews with more than 23 FTC employees. The purpose of these interviews is to advance the committee’s oversight and gather information that will inform potential legislative reforms to the Commission.

The FTC had initially attempted to block Meta’s acquisition in July 2022. However, the case was dismissed in February before it could be brought before an administrative court.

Source: The Washington Examiner

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