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by Jim Cisler

As FSMA Takes Full Effect, Partnership Opportunities Abound To Improve Food Safety Practices by Larry Bell and Jim Mueller

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Federal Trade Commission Launches Inquiry Into Supply Chain Disruptions

The US Federal Trade Commission (FTC) is ordering nine large retailers, wholesalers, and consumer goods suppliers to provide detailed information that will help the agency shed light on the causes behind ongoing supply chain disruptions and how these disruptions are causing hardships for consumers and harming competition.

The FTC is issuing the orders under Section 6(b) of the FTC Act, which authorizes the agency to conduct wide-ranging studies that do not have a specific law enforcement purpose.

The orders are being sent to Walmart, Amazon, Kroger, C&S Wholesale Grocers, Associated Wholesale Grocers, McLane Co., Procter & Gamble, Kraft Heinz Co. and Tyson Foods. Theywill have 45 days from the date they received the order to respond.

In addition to better understanding the reasons behind the disruptions, the FTC study will examine whether supply chain disruptons are leading to specific bottlenecks, shortages, anticompetitive practices, or contributing to rising consumer prices.

The orders require the companies to detail the primary factors disrupting their ability to obtain, transport and distribute their products; the impact these disruptions are having in terms of delayed and canceled orders, increased costs and prices; the products, suppliers and inputs most affected, and the steps the companies are taking to alleviate disruptions; and how they allocate products among their stores when they are in short supply.

Also, the FTC is requiring the companies to provide internal documents regarding the supply chain disruptions, including strategies related to supply chains; pricing; marketing and promotions; costs, profit margins and sales volumes; selection of suppliers and brands; and market shares.

The agency is also soliciting voluntary comments from retailers, consumer goods suppliers, wholesalers, and consumers regarding their views on how supply chain issues are affecting competition in consumer goods markets.
These comments provide an opportunity for market participants to surface additional issues and examples of how sup

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