Has FTC’s chair broken law by politicizing agency ?

By
Suzanne Downing
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9
Lina Khan

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.

Kroger chair confident merger with Albertsons will prevail in court

9 COMMENTS

  3. Thats’s an interesting observation Suzanne, that the merger is an attempt to stay competitive with the other bigger dogs playing in the field and NOT so much a stand alone action. Obvious but not obvious if you listen to the political arguments against merger.

  4. I don’t know why the Fred Meyer/Carrs is looked at from a Democrat/Republican issue. Kroger and Safeway have totally gone woke so they should not get any protections from Republican voters. I have never voted for a Democrat but combining both Carrs and Fred Meyer in Alaska is bad news. In Hawaii where there is only one national grocer, prices are much higher even though the Jones Act, (which Republican senators here support but not Begich he says) makes shipping the same rate to Hawaii or Alaska.

    Carrs’s milk, yogurt, eggs, orange juice is almost always near pull dates here in Anchorage. If Safeway cannot distribute well here, the new company will t be able to compete. This is one issue I support

  5. The fact that the commie Peltola wanted to stop the merger is probably the best reason ever to let it happen.

  6. I guess I still don’t understand. Most people I’ve talked to (including those who are Conservative) oppose the merger. They want Safeway/Carrs to continue, and for Fred Meyer to continue. The companies offer different products and different prices and different sales items. We’re not sure allowing Kroeger to “take over” offers diversity and competition for grocery shoppers in AK. Yet at the same time, one has to wonder b/c we know liberal democrats must have something up their sleeve if they oppose the merger. So, according to the article, the merger wipes out one competitor while keeping Kroeger on the playing field. Then where will the competition be locally? Palmer will ONLY have one choice. Unless we drive 10-15 more miles to Wasilla to shop WalMart or 55 miles to Anchorage to shop (DeBarr) Costco. Fortunately, there is still 3 Bears (4-5 miles from d/t Palmer) What will become of the Carrs building in Palmer and their employees? Kroeger won’t want to have both buildings, so guessing they will sell one or it will be demolished and something else built in that location.

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