FTC Report Reveals Pandemic Profiteering by Large Grocery Chains
Originally Published 1 year ago — by Federal Trade Commission News
The Federal Trade Commission released a report on grocery supply chain disruptions during the COVID-19 pandemic, revealing that large market participants exacerbated negative effects and distorted competition. Consumers faced skyrocketing prices and product shortages, with some retailers taking advantage of rising costs to increase profits. Smaller firms, especially smaller grocery retailers, struggled more than larger ones to obtain products. The report also highlighted how some larger firms sought favorable supplier allocations and considered buying manufacturing suppliers, potentially further concentrating supply chains. The Commission's findings were based on orders issued to major companies and publicly available industry data, emphasizing the impact on market structure, business conduct, and consumer welfare.