Federal Trade Commission Chair Lina Khan testifies before a House Judiciary Committee hearing on Oversight of the Federal Trade Commission, on Capitol Hill in Washington, D.C., July 13, 2023.
“Strike Force on Unfair and Illegal Pricing” Co-Chaired by FTC Chair Lina Khan and Assistant Attorney General Jonathan Kanter
“We’re excited to be co-chairing the president’s new Strike Force on Unfair and Illegal Pricing, which builds on the FTC’s far-reaching work to promote competition and tackle unlawful business practices that are inflating costs for Americans,” stated FTC Chair Lina Khan during a call with reporters on Monday. Assistant Attorney General for Antitrust Jonathan Kanter will co-chair the strike force along with Khan. Kanter expressed the Justice Department’s commitment to confront some of the world’s most powerful corporations for the betterment of American families.
Jonathan Kanter, Assistant Attorney General for the Antitrust Division at the Department of Justice, arrives at federal court on September 12, 2023 in Washington, DC.
White House Competition Council Continues the Battle against Anti-Competitive Practices
On Tuesday afternoon, President Biden will convene the sixth formal meeting of the White House Competition Council, comprising high-ranking officials from various government entities, working together to eliminate anti-competitive practices across different industries. The meeting aims to address issues related to supply chains, inflation, and corporate practices that lead to increased costs for consumers.
Lael Brainard, vice chair of the US Federal Reserve, speaks during an interview in Washington, DC, on Monday, Nov. 14, 2022.
Consumer-Friendly Actions Expected
As part of the council meeting, the Consumer Financial Protection Bureau is set to release a final rule aimed at reducing credit card late fees. Additionally, the Agriculture Department will introduce measures to protect farmers against potentially discriminatory processing practices.
The Biden administration believes that the actions taken against corporate pricing practices are crucial, which will address the public’s negative perception of the economy, despite its objectively strong performance.
Quoting Brainard, “The competition council and its members have worked to bring down costs and everything from hearing aids to asthma inhalers to EpiPens to air travel.”
Legal Questions Surrounding Aggressive Pricing
Although the administration seeks to address high pricing by corporations that harm consumers, the extent of regulators’ legal authority remains uncertain. A senior administration official, during a call on Monday, mentioned the numerous existing statutes that can be utilized to curb high prices, but acknowledged that the specific circumstances can influence the actions taken.
Biden has specifically criticized “price gouging” and “shrinkflation” as methods used by companies to maintain high profits despite reduced costs. The President’s efforts to reshape the economy through these measures have encountered dissent and skepticism.
It is worth noting that despite the initial criticism of Biden regarding the elevated cost of living, recent polls indicate growing optimism among respondents about the economy. However, the polls also suggest that in a hypothetical general election contest, Biden remains behind former President Donald Trump.
