WASHINGTON, D.C. –Today’s Supreme Court decision to overturn Chevron Deference marks a challenging development that could significantly impact the effectiveness of federal agencies in safeguarding consumers. As Susan Weinstock, President and CEO of the Consumer Federation of America, aptly highlighted, “To best safeguard consumers, protections need to be based on research and data, not on the whims of judges who have no expertise on these products and services. We will all pay the price of today’s terrible decision with our dollars, our health, and our lives.”
This ruling empowers courts to sidestep agency expertise, potentially favoring corporate interests over public welfare and enabling political appointees to shape consumer policy without the necessary background. The actions in the 5th Circuit foreshadow a troubling trend where regulatory interpretations are not just questioned but are often blocked, favoring big business over consumer protection. This shift toward judicial activism could undermine vital protections for all Americans, from investors saving for retirement to families striving for better health, housing, and safety standards.
Yet, in the face of this decision, our resolve only strengthens. The fight for consumer rights must and will go on. Despite the hurdles, we remain committed to advocating for fair and informed regulations. We stand together, ready to continue our work, ensuring that consumer protections are not only upheld but also enhanced. Our mission is clear, and our dedication unwavering—we will keep pushing forward for a safer, fairer marketplace for all.
Investor Protection
“Investors saving for their retirement, child’s education, and other important goals need the protections of the securities and retirement laws to ensure they have the information they need to make informed investment decisions and can hold those in the market who harm them accountable. This decision makes it much harder for investors to receive those necessary protections and, as a consequence, investors will suffer.” – Micah Hauptman
Consumer Protection
“The Supreme Court’s decision paves the way for political appointee judges who lack the appropriate subject matter expertise to freely question regulatory interpretations and create harmful case law that is difficult to overturn. This decision erodes longstanding, strong safeguards that keep Americans safe, healthy, and shielded from predatory and fraudulent practices.” – Erin Witte
Financial Services
“The 5th Circuit staying the CFPB’s credit card late fees rule shows what happens when activist judges can rewrite policy. Every day the credit card late fees rule remains stayed consumers pay $27 million in fees that they otherwise would not have had to pay. Of course, the late fees rule was based on sound reasoning. The CFPB relied on actual data from banks to structure the rule. With this opinion, the chances increase a regulation will be political rather than informed by subject-matter expertise. But now, it is open season on regulatory reason. This rule rubber stamps the Fifth Circuit’s agenda to put the interests of big banks ahead of consumer protections.” – Adam Rust
Food Safety
“This ruling opens the door for judicial idealogues to run interference against federal agency actions necessary to address all kinds of preventable harms in the food system. Cronobacter in infant formula, dangerous Salmonella in poultry, literally thousands of chemicals in food with unexamined safety records, alcoholic beverage labels that fail to disclose ingredients, allergens and other basic facts—all of these problems and more require federal agencies to act. Under today’s ruling, the industry and its throngs of well-paid lawyers have new power to second guess those actions. Already, federal agencies use litigation risk as an excuse for inaction. Today’s ruling threatens to usher in an age of unprecedented regulatory dysfunction.” – Thomas Gremillion
Housing
“The overruling of Chevron deference will have far-reaching consequences for the ways Americans are housed. Over the last forty years, this jurisprudence has supported the ability of federal agencies to effectively regulate American corporations and protect consumers. Within housing this includes the ability of agencies to implement federally- mandated rental protections and housing counseling, offer fair housing oversight, enforce federal emission and building standards, and protect homeowners against exploitative mortgage products. This decision risks making these types of rulemakings all but impossible and allows the worst acting corporations and their trade groups to gridlock policymaking by tying decisions up in courts.” – Sharon Cornelissen
Product Safety
“The U.S. Supreme Court’s decisions in Loper Bright Enterprises v. Raimondo and Relentless v. Department of Commerce will undermine consumer safety and health. The potential safety ramifications are enormous and could implicate vehicle safety standards, phthalates concentrations in children’s toys, drugs, medical devices, and so much more. The federal agencies tasked with ensuring public health and safety rely on their agencies’ vast technical and scientific expertise. Subject matter experts can include engineers, epidemiologists, chemists, and other complex fields. Neither Congress nor judges have access to the expansive technical expertise of federal agencies. Unlike the judicial system, federal agencies provide the public with the chance to comment on proposed regulation. As such, health and safety agencies can utilize critical information from product safety professionals and safety advocates. The foundational principle of Chevron enables agencies to keep consumers safe and healthy.” – Courtney Griffin