WASHINGTON–The Justice Department’s announcement that it will join with the CFPB in an appeal to the U.S. Supreme Court that argues its leadership structure is a violation of the Constitution is being blasted by at least one consumer group.
As CUToday.info reported here, the 9th Circuit case is Seila Law LLC v. CFPB. The National Consumer Law Center, Public Citizen, and other public interest groups laid out the arguments for why the separation of powers principles support the CFPB leadership structure’s constitutionality in amicus briefs filed in similar cases in three other circuits.
"More than 80 years ago in the Humphrey’s Executor v United States case involving the FTC, the Supreme Court upheld Congress's authority to create independent agencies and to limit the president's ability to dismiss officers for political reasons without cause,” said Lauren Saunders, associate director with the National Consumer Law Center. “The situation today is no different than when President Roosevelt tried to stack the FTC.
‘Shocking to See’
“It is shocking to see the head of a consumer protection agency who took the job with eyes open about the baseless claims against the agency suddenly reverse course and decide to undermine her own authority to protect the public,” continued Saunders. “Most courts have rejected the claim that Congress cannot protect an agency from political meddling without cause and we expect the Supreme Court to do so as well."