Open Markets Leads Letter to FTC Chairman Ferguson: Defend Non-Compete Ban in Court
WASHINGTON—Open Markets Institute led a letter to Federal Trade Commission (FTC) Chairman Andrew Ferguson urging him to vigorously defend the agency’s 2024 rule banning non-compete clauses. The letter, signed by 16 other organizations including the Service Employees International Union (SEIU) and the Strategic Organizing Center, presents the statutory authority, historical precedent, and extensive economic evidence underpinning the rule.
“The FTC’s ban on non-competes is not only a reasonable interpretation of its authority—it’s an essential for protecting worker freedom and promoting fair competition among both employers and firms in product markets,” said Open Markets’ Legal Director Sandeep Vaheesan. “Chairman Ferguson has a special opportunity here to stand up for workers and defend the FTC’s authority to act in the public interest.”
The letter explains why the ban on non-competes is lawful and essential. Ferguson should treat this rule as a cornerstone of the FTC’s pro-worker agenda and not let it die in the face of aggressive legal challenges from industry.
In addition to being a legitimate and reasonable exercise of the FTC’s powers, the ban is very popular. The FTC received more than 26,000 comments on the rule it proposed in January 2023, with more than 95% of commenters supporting the proposed prohibition on non-compete clauses. A resident of Virginia wrote: “I almost cried tears of happiness when I saw this potential ban. Non competes are a way to avoid the responsibility employers have of making the work place a desirable place to make a living.”
Open Markets has consistently advocated against non-compete agreements through legal analysis, policy research, and public comment. This letter builds on that work by urging strong defense of the FTC’s rule in court. Other efforts opposing non-competes include:
In March 2019, Open Markets led a labor and public interest coalition, which included the AFL-CIO, Public Citizen, SEIU, and UFCW, that petitioned for an FTC rule banning non-compete clauses for all workers. In the following months and years, we continued to advocate for a blanket ban and strong FTC rule through public advocacy.
Open Markets hailed the non-compete ban that the FTC proposed in January 2023 and identified in its public comment and writing how the FTC could strengthen the final rule to protect all workers from non-competes and similar such contracts.
In 2024, Open Markets Institute filed an amicus brief in Villages v. FTC, arguing that non-compete agreements are an unfair method of competition and that banning them aligns with the FTC Act and the agency’s historical policymaking, in response to a lower court ruling that the FTC exceeded its authority—a decision now under appeal.
Following suit in 2025, Open Markets Institute filed an amicus brief in Ryan v. FTC, marking the second appellate case in which Open Markets has defended the Federal Trade Commission’s (FTC) landmark prohibition on non-compete clauses.
In March 2025, Chief Economist Brian Callaci testified in support of preserving Minnesota’s blanket ban on non-compete clauses. His testimony highlights the negative impact of non-competes and similar contractual provisions on workers and the labor market.