Has FTC’s chair broken law by politicizing agency ?

Chair Lina Khan of the Federal Trade Commission is the subject of an inquiry by the House Oversight and Accountability Committee, after she appeared at Democrat candidate campaign events in recent days.

Khan’s agency has taken a stance against the merger of Kroger-Albertsons, which impacts Fred Meyer and Carrs/Safeway stores in Alaska. Khan’s agency sued to block the proposed supermarket merger, alleging that the deal is anticompetitive, when, in fact, the two stores are trying to stay competitive in a market that has been dramatically changed by the world’s three largest retailers, Walmart, Amazon and Costco. Kroger is the fourth largest retailer in the world, but the FTC wants to keep it out of the top three. The merger agreement specifies that Alaska stores belonging to the companies will be sold, including all 11 Carrs locations in Anchorage, Eagle River, Palmer, and Wasilla.

Rep. Mary Peltola has pressed Khan to block the merger, which is opposed by her labor union supporters. In December, Khan met with Peltola, who told her not to allow the merger to go through, even though the Alaska stores would be sold off.

Now, House Committee on Oversight and Accountability Chairman James Comer has been investigating politicization of the FTC under Khan’s leadership.

In a letter to Chair Khan, Chairman Comer requested documents and communications about Khan’s partisan election activities and whether her standing alongside Democrat candidates, even while she is as the head of an independent, bipartisan federal commission, is a violation of the law.

Last week, Khan crisscrossed the country, appearing at campaign rallies and events with democratic-socialist Sen. Bernie Sanders of Vermont, and Democrats Rep. Greg Casar of Texas, Rep. Raja Krishnamoorthi of Illinois, Rep. Mark Pocan of Wisconsin, and Rep. Ruben Gallego of Arizona. Gallego is running for Senate.

“The Committee on Oversight and Accountability is continuing to investigate the politicization of the Federal Trade Commission (FTC) under your leadership. During this election season, you have engaged in partisan political activities with numerous Democrat congressional candidates, undermining the FTC’s independence and its mission to protect American consumers regardless of partisan affiliation,” wrote Congressman Comer. “Such activities further diminish the FTC’s reputation under your leadership and raise serious questions concerning whether you have complied with legal and ethical standards.”

Comer’s letter is the latest in the Oversight Committee’s investigation into the politicization of the FTC under Khan. Since June 2023, the Oversight Committee has requested documents and communications from the FTC to understand concerns related to abuses of power, collusion with foreign officials and other improper conduct in the merger review process, and other matters.

“During your tenure as Chair, you have consistently demonstrated your disregard for ethical norms and willingness to serve as a political tool of the Biden-Harris Administration. As FTC Chair, you should be working to protect the American consumer instead of abusing taxpayer time and resources as an advocate for the Biden-Harris Administration and a campaign prop for Democrat congressional candidates,” Comer wrote.