FTC Rule Abandoned: FTC to Pursue Individual Enforcement Actions

This past week marked the end to the Federal Trade Commission’s (FTC’s) controversial noncompete rule, with the FTC shifting its focus to individual enforcement actions “to root[ ] out” what it considers to be unfair and anticompetitive noncompete practices by employers.

In August 2024, a few weeks before the FTC noncompete rule was set to become effective, federal judges issued decisions in Ryan, LLC v. FTC and Properties of the Villages v. FTC , blocking the FTC from enforcing the rule. The FTC appealed both rulings.

On September 5, 2025, the FTC voted 3-1 to withdraw its appeals of the rulings in Ryan, LLC v. FTC and Properties of the Villages v. FTC .

In a statement joined by FTC Commissioner Melissa Holyoak, FTC Chairman Andrew Ferguson supported withdrawing the appeals aft