Washington , US- September 4, 2025
In a significant rebuke to the president’s authority over independent agencies, a U.S. federal appeals court has ordered the reinstatement of Federal Trade Commission (FTC) Commissioner Rebecca Kelly Slaughter, who was fired by President Trump in March. The 2-1 decision by the U.S. Court of Appeals for the D.C. Circuit upholds a lower court’s ruling, marking a major setback for the administration in its ongoing legal battles over the scope of executive power.
The ruling centered on the longstanding principle that commissioners of independent agencies like the FTC cannot be removed by a president without cause. The court cited a 1935 Supreme Court precedent, Humphrey’s Executor v. United States, which established statutory protections against the at-will removal of FTC members. In its decision, the court stated that the government had “no likelihood of success on appeal” given this “controlling and directly on point” Supreme Court precedent.
Slaughter and fellow Democratic commissioner Alvaro Bedoya were dismissed in March, leaving the FTC temporarily without any Democratic members. They both filed suit, arguing their firings were illegal. While Bedoya has since resigned, Slaughter’s legal challenge has continued. A district court had previously ordered her reinstatement in July, but that order was temporarily stayed by a higher court, a stay that has now been lifted.
The White House, which had defended the president’s actions, said that past Supreme Court decisions gave the president the authority to remove agency leaders. However, the appeals court’s majority rejected this reasoning, finding that the FTC’s present-day powers are consistent with the “quasi-judicial” and “quasi-legislative” functions that the Supreme Court recognized in 1935. A dissenting judge, appointed by the president, argued that courts “likely” lacked the power to reinstate an executive branch official during ongoing litigation.
Slaughter has welcomed the ruling, stating on social media that she was “eager to get back” to her work on behalf of the American people and that the court’s decision confirms that the president is “not above the law.” She returned to her desk immediately after the ruling, moving to reinstitute the “Click to Cancel Rule” aimed at protecting consumers from abusive subscription traps. Her return is poised to shift the FTC’s dynamics, potentially restoring a Democratic majority that favors stringent oversight of big technology companies and other corporate interests.
The dispute is seen as part of a broader push by the administration to rein in independent watchdogs and assert greater control over federal agencies. This latest legal defeat for the administration is likely to be appealed to the Supreme Court, which could be asked to decide whether to re-examine the nearly century-old precedent. The ultimate outcome of the case will have significant implications for the independence of federal regulatory bodies, from the Federal Reserve to the Securities and Exchange Commission, and the balance of power between the executive and judicial branches.
Headline Points:
* Judicial Reinstatement: A federal appeals court has ordered the reinstatement of FTC Commissioner Rebecca Kelly Slaughter, ruling her firing by President Trump illegal.
* 1935 Precedent Upheld: The court’s decision cites a nearly century-old Supreme Court ruling that protects the independence of the FTC from presidential interference.
* Broader Power Struggle: The case is part of a larger legal and political conflict over the president’s authority to remove leaders of independent agencies.
* Implications for Agency Independence: The final ruling in the case, which is likely headed for the Supreme Court, will have significant consequences for the balance of power and the autonomy of federal regulators.
* FTC’s Future: Slaughter’s return is expected to restore a Democratic majority at the commission, potentially impacting antitrust enforcement and consumer protection policies.
