This chapter is about the agency that polices unfair business. It asks whether firms use green and social goals as cover. It wonders if they hide deals to fix prices. It also looks at how apps treat children.
The document says “should”Who acts: FTCHow: internal managementp. 873 in the PDF
What the document says
“The FTC should set up an ESG/DEI collusion task force to investigate firms”
The chapter suggests some firms use environmental, social and governance commitments and diversity programs as what it calls reputational laundering to avoid enforcement of potentially criminal activity. It asks that the task force look particularly at private equity, to see whether the practice is used to meet targets, fix prices or reduce output, and separately that Congress investigate the same question.
What the document actually says
“The FTC should set up an ESG/DEI collusion task force to investigate firms”
That sentence, in plain words
Set up a team to look into this. It would check whether firms use these goals to fix prices.
What this is about
Firms often announce green and social goals. The book asks whether some use them as cover. It suspects deals to keep prices up.
The document says “can”Who acts: FTCHow: regulationp. 874 in the PDF
What the document says
“This type of behavior can rise to the level of an unfair trade practice when the business is (1) publicly traded; (2) highly regulated;”
The full list of conditions continues: enjoys legal privileges, enjoys market power, and appears to pursue its own political or social agenda unrelated to any conceivable branding concern. The chapter says such decisions would normally receive deference as business judgment but that this is harder in what it calls a highly partisan, ideologically divided America, and that businesses enjoying government privileges or market power should not replace democratic decision-making with their own judgment on controversial matters.
What the document actually says
“This type of behavior can rise to the level of an unfair trade practice when the business is (1) publicly traded; (2) highly regulated;”
That sentence, in plain words
This can count as an unfair trade practice. It depends on what kind of firm it is.
What this is about
Some firms take public stands on politics. The book says that can be unfair trading. It lists the conditions, such as having market power.
The document says “should”Who acts: FTCHow: regulationp. 875 in the PDF
What the document says
“The FTC should examine platforms’ advertising and contractmaking with children as a deceptive or unfair trade practice, perhaps requiring written parental consent.”
The chapter says the agency can and should bring unfair trade practice proceedings against entities that enter into contracts with children without parental consent, and that while personal parental responsibility is key, the law must respect rather than undermine lawful parental authority.
What the document actually says
“The FTC should examine platforms’ advertising and contractmaking with children as a deceptive or unfair trade practice, perhaps requiring written parental consent.”
That sentence, in plain words
Look at how platforms sign up children. Written consent from a parent may be needed.
What this is about
Children sign up to apps by clicking agree. The book says that is a contract. It wants a parent's written consent instead.
The document says “should consider”Who acts: FTCHow: internal managementp. 876 in the PDF
What the document says
“The FTC should consider returning authority to these offices.”
The chapter says regional offices are substantially more in touch with local issues but that their reach and influence has shrunk dramatically over recent decades.
What the document actually says
“The FTC should consider returning authority to these offices.”
That sentence, in plain words
The agency's local offices have lost power. It should think about giving it back.
What this is about
This agency has offices around the country. They know local business. The book says they have lost influence.
The document says “must”Who acts: FTCHow: regulationp. 872 in the PDF
What the document says
“the consumer welfare standard must guide FTC action, but, in appropriate situations and with strong evidence, this standard must be expanded to include more factors than just price.”
The consumer welfare standard asks whether conduct harms consumers, in practice mostly through higher prices. The chapter asks that the same standard of proof used to show harm to competition also apply to the efficiencies offered to justify a practice, and separately says the agency must consider the role of government itself in maintaining market concentration, since compliance costs favor large firms.
What the document actually says
“the consumer welfare standard must guide FTC action, but, in appropriate situations and with strong evidence, this standard must be expanded to include more factors than just price.”
That sentence, in plain words
Keep judging by harm to shoppers. But weigh more than price alone.
What this is about
Antitrust asks whether shoppers are harmed. In practice that means higher prices. The book says other harms should count too.
What is disputed
What this means is contested
The chapter records that conservatives disagree about the agency's role at the most basic level. It asks directly whether the Commission should enforce antitrust or even continue to exist, and notes that some conservatives think antitrust enforcement should sit solely with the Department of Justice.
Recommendations on antitrust standards, corporate social and environmental practices, platforms and children, and the agency's regional offices.
The chapter's extended argument about antitrust theory and the economics of market concentration.
The chapter records that conservatives disagree about whether this agency should enforce antitrust at all, or continue to exist. That disagreement is recorded on the proposal it concerns.
