National HBPA Statement on Approval of ADMC Rules

“The Authority is barreling forward to implement HISA, and the FTC is enabling it by rubber-stamping another set of seriously flawed rules,” said National HBPA President Doug Daniels, DVM. “Industry concerns must be taken into account, and we believe no one at the FTC is listening. That’s why the Fifth Circuit Court of Appeals ruled HISA unconstitutional in our lawsuit. Without our efforts, I fear for our future. Today, we plan to file a motion with the Northern District of Texas court asking the judge immediately to stop these rules from going into effect.”

Timeline:

On October 13, 2022, the Authority submitted to the FTC its proposed ADMC rules. On November 18, 2022, a three-judge panel of the U.S. Fifth Circuit Court of Appeals unanimously ruled HISA unconstitutional. The court found that HISA violated the private non-delegation doctrine because the Act gave the FTC insufficient oversight over a private corporation that was tasked with regulating the industry. Shortly after, on December 12th, the FTC disapproved of the proposed rules citing legal uncertainty and a lack of uniformity throughout the U.S. due to the Fifth Circuit ruling. On December 29th, HISA was amended by Congress in a failed effort to “fix” the constitutional defects. In early January 2023, the Authority resubmitted the exact same rules for approval by the FTC. On March 3, 2023, the U.S. Sixth Circuit Court of Appeals ruled against the Fifth Circuit’s decision and found that HISA was constitutional. Today, the FTC approved the ADMC rules with no new notice and comment period and no changes whatsoever.