Antitrust at the Agencies: More Process, Mo’ Money Edition
The White House announced a slate of administrative nominations Jan. 13, including David MacNeil—founder and CEO of WeatherTech—to fill the Federal Trade Commission (FTC) seat vacated by Melissa Holyoak, who left last November to serve as interim U.S. attorney for the District of Utah.
MacNeil made his fortune by importing and later manufacturing (here in the United States) aftermarket auto floor mats and accessories. Forbes describes him as a Mar-a-Lago member who has donated more than $3 million to Trump campaigns, affiliated PACs, and inaugurations.
I’m not quite sure what to make of the pick. The FTC Act imposes no requirement that commissioners be lawyers or economists; and, for better or worse, at least one prior Trump appointee, Rohit Chopra, fit neither mold. Serious business experience could be relevant to the job and, perhaps, an asset to the commission.
Still, the FTC is a law-enforcement agency, and the laws it enforces rest heavily on economic reasoning. While a background in antitrust law, consumer protection law, or industrial-organization economics is not legally required, the fields are central to the FTC’s statutory mission and a lack of expertise in any of the three is, at best, a limitation. As far as I can tell from public sources and a short writeup by Paul Steidler, MacNeil holds no degree in law or economics; he reportedly attended Dominican University as an undergraduate before leaving to pursue business.
MacNeil is also a vocal advocate of American manufacturing, which could intersect with FTC authority at the margins. The agency enforces the Made in USA Labeling Rule, and truthful and non-misleading product-origin claims that are material to consumers are part of the FTC’s portfolio, if a small part.
Beyond that, it is hard to know what to expect if the Senate confirms him. I confess I had never heard of MacNeil before the nomination—despite having purchased aftermarket floor mats, possibly even WeatherTech’s. More puzzling is why a billionaire with no evident interest in antitrust or consumer protection policy would seek an appointment that could last until September 2032, given the requisite financial disclosures, ethics restrictions, and constraints on outside business activity.
There is also the institutional question. What difference does a third Republican commissioner make on a three-member commission? Most significant issues before the commission are decided by majority vote of the sitting commissioners. The commissioner designated FTC chairman by the president is the first among equals, possessing agenda-setting authority in addition to his or her single vote. If there are no ties to break, there’s not much chance to be a tiebreaker. Reports that FTC Chair Andrew Ferguson may be headed to a role at the U.S. Justice Department (DOJ) only add to the uncertainty, although when or whether such a role would involve his departure from the FTC remains unclear too.
I would like to have a firmer take. Blog readers expect takes; that is, after all, what blogs are for. But my analysis yields only two conclusions: (1) interesting times, and (2) who knows?