FTC Delays Supply Chain Study on GOP Pushback

A unanimous FTC agreed to a Republican proposal to delay voting on whether to issue orders to large retailers and consumer-goods suppliers to study anti-competitive effects of supply chain disruptions (see 2111100084). Despite Chair Lina Khan’s desire to “expeditiously” begin research, the commission, which recently lost its Democratic majority, agreed 4-0 Thursday to table the vote until this Wednesday, after a motion from Commissioner Christine Wilson.

Wilson and Commissioner Noah Phillips said there's a need to work on a bipartisan basis to tailor the scope of the study to ensure the agency is maximizing resources. Commissioner Rebecca Kelly Slaughter said she was ready to vote on the study Thursday but appreciated Khan’s efforts to work with Wilson and Phillips to “get to a bipartisan consensus” and make the study “as effective as possible.”

“I think we’re at a really critical stage during this economic resurgence, and I think it’s crucial for the commission to be able to expeditiously begin its research efforts in this area,” said Khan during the commissioners' virtual meeting. “The stakes are really high.” She noted testimony about the urgency of addressing supply chain disruptions, which Wilson said involves U.S. semiconductor shortages.

It’s “vitally important” to understand the supply chain disruptions, said Wilson. She noted delivery delays, manufacturers struggling to keep pace with consumer demand, rising costs of raw materials and idling of highly sought goods. “One well-crafted study, even if it takes additional time and effort, will save resources in the review” and prevent the need for additional studies, said Wilson. She said she expects commissioners to reach consensus and vote unanimously to issue the orders.

The FTC should consult supply chain experts and its bureaus of Competition and Economics, said Phillips. “We have to design a study that asks the right questions of the right targets.” The agency should seek information from an “adequately broad cross-section” of targets. “My goal is to scope the best study we can to generate useful information and inform the public” about how supply chain disruptions might affect competition. He said the disruptions are causing shortages of many types of products.

Ex-Commissioner Rohit Chopra left the FTC to lead the Consumer Financial Protection Bureau in October. His potential replacement, Alvaro Bedoya, faces Republican opposition that could delay confirmation (see 2111170059).