High-ranking Democrat supports Lina Khan amid calls for her removal.
South Carolina Rep. James Clyburn, one of the most influential Democrats in the country, has recently come out in support of Federal Trade Commission Chair Lina Khan’s work, endorsing her continued tenure as the United States’ top antitrust regulator. In a show of support for Khan, Clyburn criticized the public pressure from Democratic megadonors in the business world who have been urging Vice President Kamala Harris to replace Khan if Harris wins the 2024 White House race.
Regarding the calls for Khan’s removal, Clyburn dismissed them as “foolishness,” highlighting Khan’s strong performance, particularly citing the success of the Invitation Homes settlement. He emphasized that those who represent companies like Invitation Homes might prefer a replacement who would be less stringent in enforcing regulations.
Clyburn drew parallels between the criticism Khan faces and the opposition his daughter, Mignon Clyburn, encountered during her tenure at the Federal Communications Commission. He emphasized the importance of appointing officials who possess both competence and compassion, qualities he believes Khan exemplifies.
While Clyburn has not directly conveyed his support for Khan to Harris, he remains focused on the current political landscape and supporting Harris’ potential presidential bid. He views Khan’s work favorably and believes she is the right fit for her position.
Khan’s approach to antitrust enforcement has garnered both praise and criticism. Her proactive stance on issues such as banning noncompete agreements has earned her recognition from various quarters, including antitrust advocates from different political backgrounds. However, her strong enforcement measures have also attracted opposition from major investors and corporate leaders who feel her policies hinder innovation.
Some influential figures in the business world view Harris as an opportunity to steer away from the economic populism of President Biden’s administration. Calls from individuals like Reid Hoffman, a prominent donor, to replace Khan have raised concerns about the direction of Harris’ regulatory decisions, especially given the involvement of Tony West, Harris’ brother-in-law and Uber’s chief legal officer, in her campaign.
Clyburn’s endorsement of Khan represents a significant vote of confidence for the FTC chair. As a key figure in the moderate Democratic establishment, Clyburn’s support carries weight, given his past influence in aiding Biden’s presidential nomination. Khan, though maintaining silence on the political aspects of her role, has actively promoted her work in the media, indicating her understanding of the power dynamics in Washington.
Recent investigations by the FTC, including the case against Invitation Homes, have given Khan platforms to showcase her efforts in consumer protection. The probe into Invitation Homes revealed exploitative practices where customers were not informed of hidden fees, maintenance promises were unfulfilled, and arbitrary practices were used for security deposit withholdings and evictions.
The $48 million settlement reached with Invitation Homes aims to provide compensation to affected consumers, along with enforcing stricter guidelines on rental property management practices. The company has agreed to cease deceptive practices, respect renters’ rights, and make necessary disclosures to avoid future conflicts.
Corporate ownership of rental properties, a trend that gained momentum after the 2008 financial crisis, has raised concerns about rising rents and eviction rates. Calls for legislative interventions to regulate corporate landlords and protect tenants have been advocated by the White House and supported by individuals like Clyburn and Khan.
Clyburn praised Harris’ initiatives to address housing challenges, expressing hope for affordable housing solutions and advocating for tax incentives to boost rental home construction. Khan, on her part, welcomed additional regulatory measures to safeguard consumers and indicated readiness to provide expertise to support legislative efforts.
While facing opposition from certain quarters, Khan’s work in enforcing antitrust regulations and protecting consumer rights has garnered widespread support. With influential figures like Clyburn backing her continued tenure, Khan’s efforts to promote fair competition and consumer welfare are set to be further empowered.
