Supreme Court Rejects Bid to Let President Fire Agency Leaders

The US Supreme Court declined to hear an appeal that sought to give the president control over agencies that have long operated independently, potentially including the Federal Trade Commission and Securities and Exchange Commission.

The appeal, pressed by two research organizations in a case involving the Consumer Product Safety Commission, contended that the Constitution gives the president broad power to fire the leaders of executive-branch agencies. It called into question a 1935 Supreme Court precedent that has become a top target for anti-regulatory groups.

The court, as is its custom when turning away an appeal, made no comment, and no justice publicly dissented.

The ruling, known as Humphrey’s Executor v. United States, upheld job protections for FTC commissioners and paved the way for the independent agencies that now proliferate across the US government.

The appeal was pressed by Consumers’ Research and By Two LP, whose lawyers include Don McGahn, the White House counsel under former President Donald Trump.

Supreme Court’s Zeal to Curb Agency Power Looms in New Term

Congress established the CPSC in 1972. The commission sets standards for thousands of products — including cribs, cleaning products, kitchen appliances and all-terrain vehicles — and can seek multimillion-dollar fines from violators.

The agency is headed by five commissioners who are appointed by the president for seven-year terms and can be fired only “for neglect of duty or malfeasance in office.”

The research groups sued the CPSC over its handling of Freedom of Information Act requests. In urging the court to reject the appeal, the Biden administration said the FOIA requests are insufficient to give the groups legal standing to challenge the commissioners’ job protections.

The case is Consumers’ Research v. Consumer Product Safety Commission, 23-1323.

To contact the reporter on this story:
Greg Stohr in Washington at gstohr@bloomberg.net

To contact the editor responsible for this story:
Elizabeth Wasserman at ewasserman2@bloomberg.net

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