The U.S. Federal Trade Commission began investigations regarding the supply chain disruptions in the US.
The FTC ordered nine large retailers, large wholesalers, and consumer good suppliers to turn over information that will help the FTC shed light on the causes behind ongoing supply chain disruptions.
FTC also aims to find out how these disruptions are causing hardships for consumers and harming competition in the US economy.
Among the companies the FTC is seeking information from are Walmart, Amazon, Kroger, C&S Wholesale Grocers, Associated Wholesale Grocers, McLane Co., Procter & Gamble, Tyson Foods, and Kraft Heinz.
The companies have 45 days from the date they received the order to respond.
Commenting on the development, FTC Chair Lina Khan, noted that:
Supply chain disruptions are upending the provision and delivery of a wide array of goods, ranging from computer chips and medicines to meat and lumber. I am hopeful the FTC’s new study will shed light on market conditions and business practices that may have worsened these disruptions or led to asymmetric effects
The study will also examine whether supply chain disruptions are causing specific bottlenecks, shortages, anticompetitive practices, or leading to increasing consumer prices.
More specifically, FTC requires the companies to detail the main factors disrupting their ability to obtain, transport and distribute their products, as well as the impact in terms of delayed and canceled orders, increased costs and prices.
FTC will also explore the products, suppliers, and inputs most affected and the steps the companies are taking to address these disruptions.
Furthermore, the study is requiring the companies to provide internal documents regarding the supply chain disruptions, including strategies regarding supply chains, pricing, marketing, and promotions, costs, profit margins, and sales volumes, selection of suppliers and brands, and market shares.
Finally, FTC also wants voluntary comments from retailers, consumer goods suppliers, wholesalers, and consumers, to find out their views on how supply chain issues are affecting competition in consumer goods markets.
