gift boxes

The FTC Seeks Supply-Chain Intel from Nation’s Retailers

FTC Looks for Signs of Anticompetitive Practices

The Federal Trade Commission is seeking information from some of the nation’s top retailers to understand how they have weathered the supply-chain chaos. The request for documents is not a formal inquiry but is part of FTC research to see if supply-chain delays have led to anticompetitive practices. The agency is also trying to learn what caused the global supply-chain issues that have hurt the economic recovery.

The FTC is requesting information from a bevy of companies including Walmart (WMT), Amazon (AMZN), Procter & Gamble (PG), Kroger (KR), and Tyson Foods (TSN). The companies have 45 days to provide answers and documentation.

FTC Wants Detailed Information

The information the FTC is seeking is centered around how the lack of transportation and delayed orders resulted in higher prices. Companies also have to provide information about how they are fixing the problems and how they determine which stores get inventory and which do not when there’s a lack of a specific product.

Companies have been hit hard this year by COVID-19 interruptions which have led to clogged ports and railways and a lack of truck drivers and warehouse workers. That makes it harder to move products around the country. Big retailers including Walmart have been able to weather those problems, but smaller retailers are struggling to keep products in stock.

The Holidays Should Be Smoother Than Expected

At the same time that the FTC is looking into the supply chain, the White House is trying to assure the public there is a sufficient supply of toys, electronics, and apparel for the holidays. During a meeting with executives from Walmart, Best Buy (BBY), Food Lion, and other retailers, President Biden pointed to Black Friday as a sign the holiday season will be similar to previous years. All three companies said they have enough inventory to meet holiday demand.

The global supply chain has been a mess all year and does not appear to be improving any time soon. The FTC is trying to prevent a repeat next year by pressing the nation’s large retailers to shed some light on how they have been weathering recent conditions.

Things are changing daily within the financial world. Sign up for the SoFi Daily Newsletter to get the latest news updates in your inbox every weekday.

Sign up

Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. These links are provided for informational purposes and should not be viewed as an endorsement. No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Adviser
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.

All your finances.
All in one app.

SoFi QR code, Download now, scan this with your phone’s camera

All your finances.
All in one app.

App Store rating

SoFi iOS App, Download on the App Store SoFi Android App, Get it on Google Play

ABOUT Meg Richardson Meg Richardson is a writer specializing in markets, technology, and personal finance. She loves breaking down seemingly complex ideas and making them readable and interesting for everyone. She holds an MFA in writing from Columbia University. When she is not writing about finance, she enjoys running in Central Park and drawing cartoons.

TLS 1.2 Encrypted
Equal Housing Lender