When the “F” in FTC stands for Fascist [Darleen Click]

Not only “process as punishment” but process to gain power

Every month, it seems, brings a new story of this presidency leveling the intimidating powers of the federal government against some law-abiding citizen. Now comes a terrifying tale of how the Federal Trade Commission, a governmental Goliath, crushes an average David—because it can.

In March of this year, a small nonprofit in Cincinnati—the Music Teachers National Association—received a letter from the FTC. The agency was investigating whether the association was engaged in, uh, anticompetitive practices. [...]

The association’s sin, according to the feds, rested in its code of ethics. The code lays out ideals for members to follow—a commitment to students, colleagues, society. Tucked into this worthy document was a provision calling on teachers to respect their colleagues’ studios, and not actively recruit students from other teachers.

That’s a common enough provision among professional organizations (doctors, lawyers), yet the FTC avers that the suggestion that Miss Sally not poach students from Miss Lucy was an attempt to raise prices for piano lessons. [...]

MTNA Executive Director Gary Ingle, who has been at the organization 17 years—and who agreed to talk when I reached out about this case—said that he and the group’s attorneys immediately flew to Washington to talk to federal investigators. They explained that this provision had been in the group’s code for years, and that it was purely aspirational. The association has never enforced its code, and no member has been removed as a result of it.

The FTC didn’t care. [...]

With a dozen employees and a $2 million budget, the group doesn’t have “the resources to fight the federal government,” Mr. Ingle says. The board immediately removed the provision from its code, but the MTNA staff still had to devote months compiling thousands of documents demanded by the agency, some going back 20 years: reports, the organization’s magazines, everything Mr. Ingle had ever written that touched on the code. Mr. Ingle estimates he has spent “hundreds upon hundreds” of hours since March complying with this federal colonoscopy.

This October, MTNA signed a consent decree—its contents as ludicrous as the investigation. The association did not have to admit or deny guilt. It must, however, read a statement out loud at every future national MTNA event warning members against talking about prices or recruitment. It must send this statement to all 22,000 members and post it on its website. It must contact all of its 500-plus affiliates and get them to sign a compliance statement.

The association must also develop a sweeping antitrust compliance program that will require annual training of its state presidents on the potential crimes of robber-baron piano teachers. It must submit regular reports to the FTC and appoint an antitrust compliance officer. (The FTC wanted the officer to be an attorney, but Mr. Ingle explained that this would “break the bank,” so the agency—how gracious—is allowing him to fill the post.) And it must comply with most of this for the next 20 years.

The MTNA has no idea how it got into the FTC cross-hairs. Someone somewhere pissed off a Obama bureaucrat and now the FTC has control of the organization for the next 20 years (if they are lucky).

From the IRS to the EPA, this is how creeping fascism works. Businesses and organizations are allowed to present themselves to the public as private enterprises, but they operate at the pleasure of an unaccountable government bureaucracy.

How’s that fundamental transformation working out, eh?