As an advocate for Utah’s small business community, a small business owner myself and former local elected official, I’ve seen firsthand how excessive regulations strangle small businesses. That’s why I’m celebrating President Trump’s bold actions to dismantle the regulatory state that exploded under the previous administration.
Within hours of reclaiming the White House, President Trump demonstrated his commitment to cutting red tape by implementing an immediate regulatory freeze and requiring agencies to eliminate ten regulations for every new one issued. President Trump’s decisive leadership stands in stark contrast to his predecessor, who imposed a historic $1.7 trillion in regulatory costs on the American economy.
These bold moves by President Trump are significant, but there is still more work to be done.
While efforts have been made to limit the power of federal agencies that grew out of control under Biden, some of the Biden era harmful regulatory proposals remain. These “Zombie Rules” will undermine President Trump’s pro-growth agenda if not addressed.
Look no further than the Federal Trade Commission (FTC), where several Biden-era proposals are still lurking, including the pending Business Opportunity and Earnings Claim Rules. Despite concerns in Congress, including concerns held by Utah Senators Mike Lee and John Curtis, these rules were rushed out a week before President Trump took office, and their fate remains up in the air.
Biden bureaucrats advanced these rules under the promise that the proposals would ensure anyone promoting an opportunity about how to “make money” tells the truth. In reality, the regulations are nothing more than an effort to grow the government.
First, these new rules are unnecessary. Deceptive earnings claims are already illegal, and the FTC has a long history of prosecuting businesses that make false statements. The agency has won numerous cases, proving that existing laws are sufficient.
Second, the rules impose burdensome paperwork obligations on small businesses and entrepreneurs. The rules will require businesses across a wide swath of the economy, including but not limited to financial services, consulting, and real estate, to produce detailed documentation substantiating projections for sales-based earnings and to be ready to hand that proof to the government when regulators come knocking. Legitimate businesses will now have to spend more time and money to show they are following laws that they have been following for years. The rules create more red tape at a time the administration is seeking to remove it.
Third, the rules smack of Big Government. Under Biden, regulators tried to tell us what kind of car we could drive, what stove we could use, and what our kids could learn in school. These FTC rules, aiming to police businesses that are already being policed, represent more government intrusion.
Looking forward, it is also concerning how these regulations could be weaponized against President Trump’s supporters. Crypto investment advisors and faith-based business consultants are just two of the many emerging industries that could be targeted by these rules. For four years, the Biden administration used the legal and financial systems to go after President Trump and MAGA leaders. If enacted, there would be nothing to stop a similar White House from using these new rules to target conservative businesses.
Do not misunderstand me: protecting workers and small business owners from deceptive earnings claims matters. That’s why protections already exist. We do not need new rules. We need to keep enforcing the ones we have.
Fortunately, there is still time to put these zombie rules to rest.
President Trump is reforming the FTC, including removing the commissioners who pushed these rules forward. The next step is for the FTC to withdraw these Biden proposals completely. The agency cannot do its part to drain the regulatory swamp while simultaneously allowing new regulatory monsters to emerge.
Casey Hill is a former City Councilmember and serves as the State Director for the National Federation of Independent Business.
