The Federal Trade Commission (FTC) has been looking into ongoing supply chain issues and will ask nine large retailers, wholesalers and suppliers of consumer goods to give information on the issue, per a press release Monday (Nov. 29).
The information, gathered under Section 6(b) of the FTC Act, will help to better understand how the disruptions are causing “serious and ongoing” trouble for consumers and the U.S. economy.
The release says the FTC’s study will also look at whether the supply chain issues have been leading to specific bottlenecks, shortages or anti-competitive practices, and whether they’ve helped spur rising prices for consumers.
FTC Chair Lina Khan has said the object of the study is to help alleviate supply chain issues for wide swathes of things, ranging from computer chips to medicine to meat.
“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,” Khan said, per the report. “The FTC has a long history of pursuing market studies to deepen our understanding of economic conditions and business conduct, and we should continue to make nimble and timely use of these information-gathering tools and authorities.”
The orders are being sent to companies including Walmart, Amazon, Kroger, C&S Wholesale Grocers, Associated Wholesale Grocers, McLane, Procter & Gamble, Tyson Foods and Kraft Heinz.
Per the release, each company will have to report which factors are disrupting their production chains, the impact that has in terms of delayed or canceled orders, the suppliers and inputs most affected, and what the companies are doing to help the problem.
The companies will have 45 days to respond once they receive the order.
Supply chain issues have been ongoing for months, prompting U.S. President Joe Biden to ask to meet with the heads of Walmart, CVS and other retailers on the issue.
He was scheduled to do that on Monday (Nov. 29), with the meeting slated to include other leaders to try and fill shelves ahead of the holiday season.
Read more: Biden to Meet With Retail Leaders on Supply Chain Snags
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