In 1982, Douglas was nominated by President Ronald Reagan to replace Robert Pitofsky on the Federal Trade Commission (FTC).[5] At the time of his nomination, Douglas was serving as president of Southwest Econometrics, Inc., a private economic research company based in Austin, Texas.[4]
Though Douglas was a Democrat, he was known for his support for conservative economist measures. His nomination was pushed for by Republican FTC member James C. Miller III, a longtime friend and collaborator.[6] According to the Washington Post, Douglas is believed to have voted in the 1980 Republican presidential primary in Texas.[2]
Partially as a result of his closeness to Miller, his nomination was initially opposed by Wendell Ford, a powerful Senate Democrat who served as the party's ranking member on the Senate Commerce Committee. Though Ford favored the nomination of Amy L. Bondurant, Douglas was nevertheless confirmed to the position of FTC Commissioner.[6]
As a member of the FTC, Miller notably wrote the 4-0 decision that dropped the FTC's antitrust case against B.A.T Industries (British American Tobacco), a multinational tobacco company. B.A.T. had been accused of anti-competitive behavior after purchasing Appleton Papers, a fellow tobacco company.[7]
Following Miller's resignation from as FTC Chair in 1985, he was rumored to have supported Douglas as his replacement,[8] though the position ultimately went to Republican FTC member Daniel Oliver. In 1985, Douglas unexpectedly resigned from the FTC,[9] leading Reagan to nominate Democrat Andy Strenio, a member of the Interstate Commerce Commission (ICC), to replace him. Douglaswas the second economist to serve on the FTC, after Miller himself.[10] William Kovacic, who would go on to serve as FTC Chair from 2008 to 2009, credited his time as an attorney-adviser to Douglas during his FTC tenure with helping him understand the agency's functions.[11] Douglas died on February 10, 2012.[3]