By Jennifer Whitlock
Field Editor

Farmers and ranchers have felt the effects of broken or disrupted supply chains this year. Commodities sit on docks as cargo ships stack up at U.S. ports, waiting their turn to unload. Shipping containers are emptied and rapidly returned to countries overseas to be refilled, leaving exporters with fewer options and drastically increased costs to secure what containers are available.

Now, the U.S. Federal Trade Commission is ordering nine of the United States’ largest retailers, wholesalers and consumer good suppliers to provide detailed information for its investigation into these disruptions and how they cause ongoing hardships to consumers and businesses in the U.S. economy.

“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,” FTC Chair Lina Khan said. “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.”

FTC seeks to understand how supply chain disruptions may be leading to bottlenecks, shortages, anticompetitive practices or rising consumer prices, according to an agency press release.

The orders were sent to Walmart, Amazon, Kroger, C&S Wholesale Grocers, Associated Wholesale Grocers, McLane, Procter & Gamble, Tyson Foods and Kraft Heinz. The companies have 45 days from the date the order was received to respond.

Primary information requested by FTC from each company includes:

  • factors disrupting the businesses’ ability to obtain, transport and distribute products
  • the impact disruptions have in terms of delayed or canceled orders
  • increased costs and prices
  • products, suppliers and inputs most affected
  • what steps companies are taking to alleviate disruptions
  • and how they allocate products amongst their stores when supplies are short.

Internal documents regarding supply chain disruptions—including communications regarding pricing, marketing and promotions; costs, profit margins and sales volumes; selection of suppliers and brands and market shares—were also requested by the FTC.

The order comes under Section 6(b) of the FTC act, in which the commission is authorized to conduct studies or gather information without having a specific law enforcement purpose.

FTC is also soliciting voluntary comments from retailers, consumer good suppliers, wholesalers and consumers.