FTC Open Investigation in Grocery Price Gouging

The Federal Trade Commission (FTC) has initiated an inquiry into the ongoing supply chain disruptions affecting various sectors, including retail, wholesale, and consumer goods industries. The inquiry aims to investigate the underlying causes of these disruptions, which have led to empty shelves and increased prices across the U.S. economy.

Under Section 6(b) of the FTC Act, the Commission has ordered nine major retailers, wholesalers, and consumer goods suppliers to provide detailed information regarding the supply chain disruptions. The companies receiving these orders include industry giants such as Walmart Inc., Amazon.com, Inc., Kroger Co., and others. These orders require the companies to respond within 45 days, providing insights into the primary factors affecting their ability to obtain, transport, and distribute products.

FTC Chair Lina M. Khan emphasized the significance of understanding market conditions and business practices that may have exacerbated these disruptions. She expressed hope that the inquiry would shed light on the challenges faced by businesses and consumers alike, from delayed orders to rising costs.

In addition to gathering information from these companies, the FTC's inquiry will explore whether supply chain disruptions have led to specific bottlenecks, shortages, or anticompetitive practices. The agency is particularly interested in assessing the impact of these disruptions on consumer prices and competition within the consumer goods markets.

To supplement its investigation, the FTC is soliciting voluntary comments from various stakeholders, including retailers, wholesalers, consumer goods suppliers, and consumers themselves. These comments will provide additional perspectives on how supply chain issues are affecting competition and consumer welfare.

The Commission's decision to issue these special orders was unanimous, reflecting the bipartisan acknowledgment of the importance of addressing supply chain disruptions. The FTC remains committed to promoting competition and protecting consumers, leveraging its authority to conduct thorough inquiries into critical economic issues.

Stay tuned for further updates on the FTC's inquiry into supply chain disruptions as the Commission continues its efforts to address these challenges and safeguard the interests of consumers and businesses alike.