Appellate Court Dismisses Claim Against FTC Statutory Structure

In Axon Enterprise v. Federal Trade Commission, the U.S. Court of Appeals for the Ninth Circuit affirmed the dismissal of an action by Axon Enterprises, Inc., ("Axon") arguing that the FTC's administrative enforcement process violated Axon's constitutional rights.

Originally, the FTC filed an administrative complaint challenging Axon's acquisition of a competitor, demanding that Axon spin off the company. In response, Axon filed a lawsuit in the U.S. District Court for the District of Arizona that argued that the FTC's administrative enforcement process, which precludes the case from being heard in a federal court, violates due process rights and "runs afoul of separation-of-powers principles." The district court dismissed the complaint.