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AdvaMed Comments on the FTC’s Proposed Rule Banning Non-Compete Clauses in Contracts with Workers


AdvaMed, the medtech association, recently commented on the FTC’s proposed rule that would ban employers from imposing or enforcing non-compete clauses in contracts with certain workers. AdvaMed opposes the FTC’s vastly overbroad proposed rule because it threatens patient health, innovation, and competition. 

“The proposed rule would significantly impede medical technology innovation and reduce competition, resulting in diminished quality and increased cost of healthcare available to patients,” said Christopher White, General Counsel and Chief Policy Officer.

From the comments submitted by AdvaMed: “[T]he continued ability of medical device companies  of any size to make rapid, significant, and sometimes transformational advances in healthcare technology depends upon their continued substantial investments in innovation, research, and development, as well as their ability to recoup their investments in these activities and their employees through fair competition.”

“[P]reventing the misappropriation of confidential business information and protecting the industry’s investments in innovation and talent are essential for ensuring patient access to the best medical technology possible. The FTC’s overly broad and nebulous ban on non-compete and ‘de facto non-compete’ agreements prevents the industry’s ability to do so.  In fact, the FTC’s suggestion that non-compete agreements harm competition does not apply to the medical technology industry where innovation/investment drives competition and prohibiting non-compete agreements harms innovation/investment.”

“Any rule must take a more nuanced approach to regulating non-compete agreements and recognize that certain confidential business information needs to be protected – anything less jeopardizes patient health, innovation, and competition.”  

The U.S. medical technology industry is responsible for a highly disproportionate share of medical advances globally and is committed to the development of new technologies and services that allow patients to lead longer, healthier, and more productive lives.  Small and large companies alike rely on non-compete agreements to foster innovation, safeguarding patient access to lifesaving/life-enhancing technologies.

For a copy of AdvaMed’s comments, please click here.

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AdvaMed member companies produce the medical devices, diagnostic products and health information systems that are transforming health care through earlier disease detection, less invasive procedures and more effective treatments. AdvaMed members range from the largest to the smallest medical technology innovators and companies. For more information, visit

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