In response to the Federal Trade Commission’s (FTC) ban on non-compete agreements, Brian Wild, Chief Government Affairs Officer for the National Association of Wholesaler-Distributors (NAW), released the following statement:

“The FTC’s ban not only exceeds the agency’s statutory authority but threatens to exacerbate workforce shortages and impose undue legal burdens on businesses, particularly wholesaler-distributors. Rather than addressing legitimate concerns, it represents a misguided attempt to micromanage private contractual arrangements.

The ban on non-compete agreements worsens the challenges faced by distributors in training and retaining talent amid supply chain disruptions and inflationary pressures.

Wholesaler-distributors use non-competes narrowly, for just one or two years as part of a retention strategy that includes heavy investment in employee training and growth. These agreements safeguard investments and sustain competitiveness.

The FTC’s actions represent an egregious power grab, well beyond its jurisdiction of antitrust enforcement and consumer protection. This reckless expansion sets a dangerous precedent for regulatory intrusion.”

The National Association of Wholesaler-Distributors (NAW) is one of America’s leading trade associations, representing the $8 trillion wholesale distribution industry. Our industry employs more than 6 million workers throughout the United States, accounting for approximately 1/3 of the U.S. GDP. 250,000 wholesale distribution companies operate across North America, including all 50 states. Learn more.