On March 22, 2021,
Joe Biden announced that he was nominating Khan to be a commissioner of the Federal Trade Commission to a term ending September 26, 2024. On June 15, 2021, her nomination was confirmed by the
Senate by a vote of 69 to 28. Khan was confirmed with bipartisan support, mainly attributed to her "influential anti-Amazon views" being widely reflected in Congress. Biden then appointed her chairperson of the FTC. Upon taking office, Khan became the third
Asian American to serve on the FTC, after
Dennis Yao (who served from 1991 to 1994) and her former boss
Rohit Chopra (who served from 2018 to 2021).
Actions and policies In April 2024, the FTC issued a landmark regulation that banned the enforcement of existing
non-compete agreements on employees other than senior executives, and prohibited new non-compete agreements against all categories of employees. The non-compete regulation was struck down in August 2024 by a federal court, which ruled that it was an overreach of statutory authority on the part of the FTC to issue such a regulation and that the regulation was arbitrary and capricious. Khan has been outspoken about potential perils from business monopolies, and also expanding anti-trust regulation and enforcement, among merger filings, of which only two percent receive added scrutiny. Under Khan's leadership, the FTC voted unanimously in 2021 to enforce the
right to repair as policy and to consider action against companies that limit the type of repair work that can be done at independent repair shops; has pursued lawsuits against companies to lower drug prices, including for insulin and inhalers; and adopted the "
click to cancel" rule in 2024 for consumers to efficiently end subscription services. Under Khan, the FTC had a mixed record in its attempts to block mergers and acquisitions. Through the first half of her tenure, the FTC lost multiple high-profile merger challenges resolved in court, including the
Microsoft-Activision Blizzard merger and Meta's acquisition of
Within. In December 2023, the FTC won its first major challenge in court by blocking
Illumina's acquisition of
Grail after a 3-year legal battle. In 2024, the FTC won two major merger challenges in court, blocking
Tapestry, Inc.'s attempted acquisition of
Capri in November and
Kroger's attempted acquisition of
Albertsons in December.
Accusations of bias Following her appointment as chairperson, both
Amazon and
Meta Platforms filed petitions with the FTC seeking her
recusal from investigations of the companies, suggesting that her past criticism of the companies left her unable to be impartial. According to legal scholar
Eleanor Fox, the standard for recusal is very high and unlikely to be met for Khan. Senator
Elizabeth Warren and other supporters of Khan argued that the recusal demands amount to an attempt by these companies to intimidate Khan in order to curtail regulatory scrutiny. According to leaked documents, the FTC's Designated Agency Ethics Official (DAEO), Lorielle Pankey, did not believe Khan had violated any ethical standards, but still recommended that she recuse herself from the case with
Meta Platforms to avoid the appearance of bias; this recommendation was rejected by Khan and the FTC. The official who made the recommendation was later revealed to have owned Meta stock at that time, prompting concerns about Pankey's own conduct. In response, Khan and the FTC released a unanimous statement in support of Pankey. Earlier in February 2023, Republican FTC Commissioner
Christine Wilson announced her plan to resign from the agency citing her opposition to Khan's leadership, including her refusal to recuse from the FTC lawsuit against Meta.
Public debate over policies and role In July 2023, Republicans had Khan testify before the
House of Representatives Judiciary Committee. Democrats on the committee defended Khan and the actions of the agency, arguing that she was taking steps that protected user privacy.
Ken Buck, a
Republican, praised Khan's actions, and highlighted members of
Congress using insider knowledge for stock trading, and noted the disparity between permitting such conduct, and seeking to limit Khan because she "wrote a law review article."
Matt Gaetz, a Republican, praised Khan's efforts, citing several offenses by the
Ring Doorbell company, and asked Khan to continue investigating them. Similarly, Gaetz noted that
Kochava had been selling customer's personal data, and asked Khan to continue investigating and to let Congress know what new laws might be needed. Khan was noted by both critics and supporters for her aggressive approach to regulation as FTC chair, invoking novel arguments and pursuing non-traditional cases but also risking more losses in court. Khan and the FTC argued that the increase in agency action resulted in an additional deterrence effect, leading to some businesses dropping attempted mergers and acquisitions. Among others,
Lockheed Martin's attempted acquisition of
Aerojet, as well as
Sanofi's attempted acquisition of Maze Therapeutics, were both withdrawn following FTC scrutiny. Khan and her supporters have pointed to these abandoned deals as enforcement victories outside of a judicial environment. In a 2023 Congressional hearing, Khan denied accusations that she brought cases that she expected to lose but acknowledged risks in her aggressive approach in opposing mergers.
Agency morale under Khan In the first two years of Khans tenure, FTC employees reported declines in metrics such as employee satisfaction and faith in leadership, according to data from the 2021 and 2022 Federal Employee Viewpoint Surveys conducted by the
Office of Personnel Management. Prior to Khan's tenure, the FTC consistently ranked at the top of federal agencies in workplace rankings in both Democratic and Republican administrations. 94.3% of FTC staff had favorable views of senior leadership in 2020, declining to 51.7% in 2021, and to 46.6% in 2022. After Khan's appointment, the FTC switched from ranking first in favorable views of senior leadership among federal agencies to first in unfavorable views. Khan said it was a priority to improve staff morale following the initial Federal Employee Viewpoint Survey results during congressional testimony in July, 2023. Improvements in employee satisfaction were measured in 2023, reclaiming over half of its decline in morale since 2021.
Termination Despite early bipartisan support for her continuing in her role as chairman under President
Donald Trump, including positive comments in 2024 from Republican vice presidential candidate
JD Vance and former Trump advisor
Steve Bannon, Khan was replaced by
Andrew N. Ferguson in 2025. == Post-FTC ==