By Mike Scarcella

Aug 12 (Reuters) - A judge in Texas has refused to block the U.S. Federal Trade Commission from pursuing consumer protection and racial discrimination claims against a major auto dealership owner that argued the FTC's case was barred by the U.S. Constitution.

In an order on Monday, U.S. District Judge Reed O’Connor in Fort Worth said Asbury Automotive Group ABG.N had not met the high bar to preliminarily enjoin the agency's administrative case against it.

Asbury, which the FTC accused of duping consumers with hidden fees and charging Black and Latino buyers more than others, lodged a wide-ranging lawsuit last year seeking to block the agency action.

The company partly alleged that it was being denied the constitutional right to a jury trial, and that FTC commissioners and administrative law judges were improperly insulated from the broad removal powers of the U.S. president.

Asbury had not shown a “substantial likelihood” that it would succeed on the merits of its lawsuit, O'Connor said, and so he declined to issue a preliminary injunction.

O’Connor dismissed most of Asbury’s lawsuit. But he said he would weigh further arguments on whether the FTC’s claims against Asbury belong in a federal court and not at the agency.

Asbury and the FTC did not immediately respond to requests for comment.

The FTC filed its administrative complaint against Asbury in August 2024, seeking an order that would require the company to stop its allegedly predatory and discriminatory consumer practices.

The administrative action at the FTC was put on hold while the Texas court considers Asbury's lawsuit against the agency.

The case is Asbury Automotive Group Inc v. Federal Trade Commission, U.S. District Court for the Northern District of Texas, No. 4:24-cv-00950-O.

For Asbury: Edward Burbach of Foley & Lardner

For FTC: Zachary Cowan of the Justice Department

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(Reporting by Mike Scarcella)