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U.S. Supreme Court allows FTC, SEC complaints to be challenged in federal courts

By Greg Hahne
Associated Press
Published: Friday, April 14, 2023 - 2:31pm

The U.S. Supreme Court is allowing challenges to the structure of two federal agencies to go forward in district court. 

The high court made the unanimous ruling as it relates to the Federal Trade Commission and the Securities and Exchange Commission. 

In one case, the FTC brought an enforcement action against Scottsdale-based Axon Enterprise, known for developing the Taser, over the purchase of a competitor. 

The other involved an SEC-enforcement action against a certified public accountant. 

Both argued the commissions’ administrative law judges were insufficiently accountable to the president, violating the separation-of-powers principles in the Constitution.

Justice Elena Kagan wrote in an opinion that federal courts can resolve challenges to the structures, and are not barred from entertaining the claims.