FMI - The Food Industry Association appreciates the opportunity to submit comments in response to the Federal Trade Commission’s (“FTC”) Notice of Proposed Rulemaking (“NPRM”) entitled “Noncompete Clause Rule.” 1 For the reasons set forth below, FMI respectfully urges the FTC to withdraw the proposed rule because it lacks the authority to issue it. If the FTC chooses to proceed with this rulemaking, it should at the very least narrow the scope of its proposed ban on non-compete agreements to accommodate employers’ reasonable interests in using noncompete agreements to protect sensitive business information and trade secrets and to promote beneficial employment and corporate transactions.
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