How State Legislatures Can Protect Key Biden Consumer Protection and Small Business Rules

December 5, 2024 State and Local Policy

Under the Biden Administration, the Federal Trade Commission, led by Chair Lina Khan, and the Consumer Financial Protection Bureau, led by Chair Rohit Chopra, kickstarted an era of more effective, modern, and robust enforcement and rulemaking that offered better protection to consumers, workers, and independent businesses.

This was accomplished, in part, by introducing rules and guidelines designed to crack down on anticompetitive mergers, protect the ability of local businesses to find workers, and protect consumers from the deceptive pricing tactics that have been adopted across corporate America.

These measures are extremely popular, garnering widespread, bipartisan support across all demographics, at a time in which voters are clearly responding to economic concerns about prices and corporate abuses of consumers across a host of markets.

It is unclear what the incoming Trump Administration intends regarding appointments to the FTC and CFPB, and therefore whether those agencies will work to implement or rescind these initiatives. Several are also the subject of litigation, and it’s not known whether the agencies will continue defending them in court. Several of them could also be overturned by the incoming Congress.

But state legislatures can take steps to codify these important policies in state law, ensuring their residents continue to enjoy vital protections regardless of changes in federal policy. At the same time, if these rules are kept in place and withstand court challenges, states will be able to offer additional protection and enforcement.

This joint memo with the Consumer Federation of America details ten policies based on FTC and CFPB actions that state legislatures can adopt.