On June 29, the U.S. Supreme Court issued one of its most consequential decisions of the year, but it wasn’t about abortion, immigration, or guns. Instead, it centered on something that affects nearly every American, often without them even realizing it.
In a landmark decision, the Supreme Court gave the President broader authority to fire leaders of numerous independent regulatory agencies. These are the very agencies responsible for protecting consumers, investigating corporate misconduct, and regulating businesses.
Many Americans haven’t directly interacted with independent agencies, but the impact of their work is far-reaching:
Companies sued by the Federal Trade Commission (FTC) for misleading consumers helps families avoid financial harm.
Fraud investigations by the Securities and Exchange Commission (SEC) helps protect retirement savings and college funds.
Recalled products by the Consumer Product Safety Commission (CPSC) prevents individuals from being injured, sometimes catastrophically.
These agencies play an important role in Americans' lives by helping protect their health and safety, finances, workplace rights, and privacy. They also ensure access to fair markets, where consumers have choices, pay reasonable prices, and aren’t deceived by businesses.
The Supreme Court’s decision to expand presidential power over independent regulatory agencies may switch what they focus on, which could affect millions. They could stop being driven by what’s best for every American to what can be done that aligns with the current administration’s priorities.
Other important Supreme Court rulings about birthright citizenship, transgender athletes, and campaign finance were delivered this week. But what happened the executive power ruling could have widespread effects across the country.
What Did the Supreme Court Decide About Independent Agencies?
Congress intended certain agencies, including the CPSC, to operate with a degree of independence from political influence. That’s no longer the case.
The Supreme Court ruled that the President may remove leaders of certain independent agencies.
For decades, these agencies have been led by officials who could only be removed for specific reasons, such as misconduct or failing to fulfill their duties. Now, the President has the authority to fire some agency officials and replace them with people who support the administration’s policies and priorities.
There are specific procedures for how a case reaches the Supreme Court, and they receive several thousands of requests but only deliver 60-80 rulings each year. This ruling, giving the President firing power over leaders of independent agencies, goes against the nearly 100 years they were shielded from this level of political interference.
What are Independent Regulatory Agencies?
Independent regulatory agencies are responsible for enforcing laws, protecting consumers, and regulating industries that affect daily life.
Some of the agencies that could be affected by the Supreme Court’s executive power ruling include:
- Federal Trade Commission: Investigates scams, deceptive advertising, antitrust violations, privacy issues, and unfair business practices.
- Consumer Product Safety Commission: Recalls dangerous or defective products, such as toys, cribs, lithium-ion batteries, appliances, and household items.
- Securities and Exchange Commission: Oversees financial markets and investigates investment fraud.
- National Labor Relations Board (NLRB): Handles disputes involving unions and workplace rights, such as unjust firing of employees or retaliation against employees who raise concerns.
- Federal Communications Commission (FCC): Regulates telecommunications and broadcasting and helps stop illegal robocalls and scam calls.
Someone who has received a product recall notice, reported a scam, invested in the stock market, or relied on workplace protections has benefited from the work of one or more of these agencies.
How Could the Ruling Affect Everyday Americans?
The Supreme Court’s decision to give the President broader power over independent regulatory agencies does not immediately change any laws. However, it could influence how laws are enforced, and what agencies focus on.
Presidents now have the power to appoint agency leaders who share their priorities, which could lead to more aggressive enforcement on some issues, or less on others.
For example, agencies may decide to:
- Increase or reduce investigations into deceptive advertising (when consumers are misled about a product or service).
- Pursue more or fewer antitrust cases against large corporations, which can raise costs of everyday items.
- Change how aggressively possible dangerous products are investigated and how quickly product recalls are made when safety concerns are reported.
- Focus more (or less) on investigating companies that misuse consumers’ personal information or use artificial intelligence in ways that may harm consumers.
- Give higher or lower priority to investigations involving workers’ rights and labor disputes.
It’s important to note that these are potential changes in enforcement priorities. No one knows which agencies will be affected yet.
Recent Examples of Work by Independent Regulatory Agencies
What independent agencies do frequently make headlines, but people often don’t know which one is responsible. Here are a few examples of recent agency work.
Over the past several years, the FTC has been investigating tech companies for multiple allegations. From anticompetitive conduct and deceptive business practices to privacy violations, the Federal Trade Commission has been busy.
They’ve also taken steps against companies accused of using misleading subscription programs, hidden fees, and false advertising – all of which the agency claims have cost consumers millions of dollars.
Then there’s the CPSC. They regularly announce recalls involving products found in homes across the country. Most recently, the agency has warned consumers about hazardous lithium-ion batteries linked to fires in e-bikes and other products.
The CPSC has also recalled children’s products that posed strangulation and suffocation risks and ordered recalls of defective household appliances that could seriously injure people.
Could the Supreme Court’s Ruling Affect Lawsuits?
The Supreme Court’s ruling on independent agencies could have numerous implications for civil lawsuits. And it all boils down to evidence.
Investigations by federal agencies often uncover what later becomes evidence in civil lawsuits, such as those involving defective products, consumer fraud, securities violations, or antitrust claims.
For example, if the CSPC identifies safety problems with a consumer product, what they find may be pivotal for cases filed by injured consumers. But if their leadership is changed, there may be different priorities, and certain types of investigations may begin sooner, while others are delayed.
Is the Executive Power Ruling Good or Bad for Americans?
Supporters argue the ruling means the President can be held responsible for how regulatory agencies perform. They also say the President should be able to remove leaders who don’t carry out the administration’s policies because he’s in charge of the executive branch. Critics aren’t buying it.
Those who oppose giving greater power to the President worry that agency leaders may feel pressure to switch priorities to match the current administration’s. This would mean decisions wouldn’t be primarily based on science, economics, or legal expertise.
Consumer advocates also fear that investigations and enforcement of laws and regulations could vary significantly from one administration to the next. This could ultimately result in inefficiencies within agencies and cause harm that could have been prevented.
The Outcome of Broader Executive Power
Independent regulatory agencies investigate complaints, enforce laws, and hold businesses accountable. While they often operate behind the scenes, their decisions affect millions of people every day.
Right now, there’s no way to know for sure how the ruling giving presidents authority to remove leadership at independent agencies will unfold. It may take months, even years, to see the depth of which such power will affect everyday life.
Much will depend on how future presidents use these powers and how federal agencies adjust their enforcement priorities as a result.
But the lasting impact of the Supreme Court’s ruling for consumers may be felt in a much more personal way – through the products Americans buy, scams they avoid, investments they made, and consumer protections they rely on.
