On November 29, the Federal Trade Commission (FTC) voted 4-0 to approve moving forward in using its Section 6(b) authority in ordering nine large retailers, wholesalers, and consumer good suppliers to provide information for a study on how competition has affected supply chain disruptions. Specifically, Section 6 of the FTC Act empowers the FTC to order businesses to provide reports or specific answers to FTC questions even when the FTC is conducting a study without a specific law enforcement purpose. Companies that receive an order have 45 days from the date of receipt to respond.
Among some of the primary questions being asked within the order is as follows:
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.
How companies allocate products among their stores when they are in short supply.
The FTC is also soliciting voluntary comments from companies and consumers regarding views on how the supply chain issues are affecting competition in consumer goods markets.
RILA is continuing to monitor this development and will provide further information and updates as they become available.
To read the FTC press release, click here.
To read the FTC 6(b) Orders, click here.
If you have any questions, please contact RILA Director of Government Affairs Austin Gold.