Pest Control Probe: FTC Settles with Rollins on Competition Claims
Published Date: 4/22/2026
Notice
Summary
Rollins, Inc. is facing claims that it broke rules about fair competition, and the FTC has a deal to fix this. The company agrees to stop certain unfair practices, and the public can share their thoughts by May 22, 2026. This move aims to keep the market fair without any immediate money penalties but could change how Rollins does business.
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Analyzed Economic Effects
6 provisions identified: 5 benefits, 1 costs, 0 mixed.
Ban on Non-Competes for Most Workers
The Proposed Order prohibits Rollins from entering into, maintaining, or enforcing Non-Compete Agreements against Covered Employees. These agreements previously often barred employees from working in the pest-control industry for two years within about a 75-mile radius and applied to the bulk of Rollins's more than 18,000 U.S.-based employees.
Right to Advertise and Solicit Customers
The Proposed Order prohibits Rollins from prohibiting Covered Employees from using general advertisements to solicit customers or from responding to inquiries initiated by Rollins customers. The Order thus expressly allows employees to compete, including by advertising for customers.
No Fees, Penalties, or Intimidating Communications
The Proposed Order bars Rollins from requiring any Covered Employee to pay fees or penalties related to Non-Compete Agreements and from communicating to a Covered Employee or any other prospective or current employer that the Covered Employee is subject to a Non-Compete Agreement.
Order Protections Last Ten Years
The Proposed Order's term is ten years, meaning the prohibitions and notice requirements would remain in effect for a ten-year period if the Order is made final by the Commission.
Written Notice Employees Are Free to Compete
Section III of the Proposed Order requires Rollins to give clear and conspicuous written notice to Covered Employees that they (i) are not subject to a Non-Compete Agreement; (ii) may compete with Rollins, including by starting their own business; and (iii) may solicit customers through general advertisements.
Exception: Senior Leaders May Remain Restricted
The Proposed Order excludes certain directors, officers, and other defined senior leaders who exercise policy-making authority and who are eligible for equity or equity-based interests from the ban on Non-Compete Agreements, meaning those senior employees may still be subject to non-competes.
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