A US judge ruled against the Federal Trade Commission's ban on noncompete agreements, stating the FTC lacks the authority to enforce such rules. The ruling is a preliminary injunction against the ban, but it suggests that the FTC may struggle to enforce it in the future. The case is in the US District Court for the Northern District of Texas and may be appealed to the conservative US Court of Appeals for the 5th Circuit. The FTC issued the ban on noncompete agreements, arguing that they are unfair and anti-competitive. A tax services firm, along with business groups and a lobbyist association, sued the FTC to block the rule. The judge granted a preliminary injunction and postponed the rule's effective date. The ruling questions the FTC's authority to create substantive rules regarding unfair competition. The decision is seen as part of a broader trend of limiting agency power and may have wider implications for federal regulations.