FTC looks into supply chain disruptions

Published 8:30 am Friday, December 3, 2021

The Federal Trade Commission is ordering nine large retailers, wholesalers and consumer good suppliers to provide detailed information that will help shed light on the supply chain disruptions and how they are causing hardships for consumers and harming competition in the U.S. economy.

The orders were sent to Walmart, Amazon.com, Kroger, C&S Wholesale Grocers, Associated Wholesale Grocers, McLane Co., Procter & Gamble, Tyson Foods and Kraft Heinz. The companies will have 45 days to respond.

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

The orders require the companies to detail the primary factors disrupting their ability to obtain, transport and distribute 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; the steps the companies are taking to alleviate disruptions; and how they allocate products among their stores when they are in short supply.

The FTC is also 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.

In addition, the agency is soliciting comments from retailers, consumer goods suppliers, wholesalers, and consumers regarding their views on how supply chain issues are affecting competition in consumer goods markets.

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