FTC probes supply chain issues, requests data
The Federal Trade Commission (FTC) has looked into current supply chain issues and will ask nine major retailers, wholesalers and suppliers of consumer goods to provide information on the issue, according to a press release on Monday. November 29.
The information, gathered under Section 6 (b) of the FTC Act, will help better understand how the disruptions are causing âserious and lastingâ problems to consumers and the US economy.
The statement said the FTC study will also examine whether supply chain issues have resulted in any specific bottlenecks, shortages, or anti-competitive practices, and whether they have helped drive up prices for those companies. consumers.
FTC President Lina Khan said the purpose of the study is to help alleviate supply chain issues for wide swaths of things from computer chips to drugs to meat. .
âI hope the new FTC 6 (b) study will shed light on the market conditions and business practices that may have worsened these disruptions or lead to asymmetric effects,â Khan said, according to the report. âThe FTC has a long history of conducting market research to deepen our understanding of economic conditions and how to do business, and we must continue to make agile and timely use of these information gathering tools and authorities. “
Orders are sent to companies such as Walmart, Amazon, Kroger, C&S Wholesale Grocers, Associated Wholesale Grocers, McLane, Procter & Gamble, Tyson Foods and Kraft Heinz.
According to the release, each company will need to report what factors are disrupting their production chains, the impact that has in terms of delayed or canceled orders, which suppliers and inputs are most affected, and what companies are doing to address the issue.
Companies will have 45 days to respond to receipt of the order.
The supply chain issues have been going on for months, prompting U.S. President Joe Biden to request to meet with executives at Walmart, CVS and other retailers on the matter.
It was scheduled to do so on Monday (November 29), with the meeting to include other leaders to try and fill the shelves before the holiday season.
Read more: Biden to meet with retail leaders on supply chain issues