US watchdog requests information from nine companies in the field of supply chain exploration
The Federal Trade Commission has asked retailers and consumer goods groups in the US, including Amazon and Walmart, to provide information about their supply chain as it probes bottleneck and high prices affect the economy.
The move, announced on Monday by the FTC, the US competition watchdog, will put pressure on US companies to protect their prices and the way they do business and take additional steps to reduce backlog work ahead of the holiday shopping season – a growing preoccupation for the Biden administration.
“Supply chain disruptions are accelerating the supply and distribution of a wide range of goods, from computer chips and medicines to meat and timber,” said Lina Khan, president of the FTC. FTC, said in a statement.
“I hope new FTC. . . The study will shed light on market conditions and business practices that may have exacerbated these disruptions or led to asymmetric effects,” she added.
The FTC is seeking information from nine companies, including grocery chain Kroger, consumer goods company Procter & Gamble, meat producer Tyson Foods and food company Kraft Heinz, along with several wholesalers. .
The announcement of the investigation came as president Joe Biden met with a group of top executives at the White House to stress the importance of smooth sailing. supply chain operate during the holiday.
Although the US economy has boomed since Mr. Biden took office, public perception of the recovery and the way the administration has handled it has been affected by price increases and, in some cases, delay and difficulty in securing the product.
The FTC investigation risks increasing tensions between the US company and the Biden administration, as it relates to a wide-ranging disclosure request and shows that the company’s activities may have contributed to backlog.
The FTC said it would study whether supply chain disruptions lead to “congestion, specific shortages, anti-competitive practices, or contribute to rising consumer prices”.
Biden was scheduled to make comments on the supply chain on Monday, but was later delayed until Wednesday. Earlier this month, the FTC also opened an investigation into high gasoline prices as the Biden administration sought to pressure oil companies to ease inflationary pressures in their sectors.
Major retailers have expressed confidence that efforts to bring goods into the country earlier than usual will help them meet strong consumer demand, which Matthew Shay, chief executive officer of the National Retail Federation, said. has been “driven” by historic levels of fiscal stimulus.
“Overall, consumers are in a great place; they’ve saved $4 billion, they’re going shopping, sales have increased dramatically this year [and] We look forward to a great holiday season,” Shay told CNN on Friday. “Because retailers already have inventory in place [consumers] will find the gifts they have on their list. “
Early data on the extended Thanksgiving weekend suggests that in-store spending up sharply from last year’s pandemic depression, but online spending has fallen short of analysts’ expectations.
