FTC to Probe Supply Chain Kinks

Nov. 30, 2021
The Federal Trade Commission is seeking information from key players in the food supply chain about why the chain is so snarled.

The Federal Trade Commission is seeking information from key players in the food supply chain about why the chain is so snarled.

The FTC issued an order for key documents and information about supply chain interruptions to nine companies, including Tyson Foods and Kraft Heinz, as well as food retailers and wholesalers. The order was issued under provision 6(b) of the FTC Act, which allows the agency to conduct studies without a specific law-enforcement purpose.

“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 6(b) study will shed light on market conditions and business practices that may have worsened these disruptions or led to asymmetric effects,” agency chair Lina M. Khan said in a statement.

The orders require the companies to detail the primary factors disrupting their supply chains, the impact of the disruptions, and how companies are trying to deal with them.

The FTC’s vote for the order was 4-0. The companies have 45 days from the date of issuance (Nov. 29) to comply.

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