President Joe Biden is set to announce the formation of a new task force aimed at scrutinizing "unfair and illegal" pricing within the corporate sector. This initiative, led jointly by the Federal Trade Commission (FTC) and the Department of Justice (DOJ), marks a significant step in the administration's broader regulatory agenda, focusing on promoting competition and curbing practices detrimental to consumer welfare.
FTC Chair Lina Khan, alongside Jonathan Kanter, assistant attorney general for the DOJ's antitrust division, will co-chair this newly minted Strike Force on Unfair and Illegal Pricing. This collaborative effort is poised to leverage the extensive capabilities of both agencies in tackling unlawful business conduct contributing to escalated costs for the American populace.
The inception of this task force coincides with the sixth formal convening of the White House Competition Council, a collective of senior officials dedicated to eradicating anti-competitive practices across various industries. This concerted effort underscores the administration's commitment to ensuring that savings from improved supply chains and diminished inflation rates are passed on to consumers, a sentiment echoed by National Economic Council Director Lael Brainard.
This strategic move by the White House comes amidst a backdrop of growing public discontent with the perceived slow pace at which consumers are experiencing relief from inflationary pressures, despite objective indicators of a robust U.S. economy. The administration's focus on corporate pricing strategies, such as "price gouging" and "shrinkflation," is part of a broader crusade to realign public perception with the economic realities, aiming to assuage concerns over the elevated cost of living in the post-pandemic landscape.
Amidst these regulatory advancements, the administration is also championing consumer protections in other areas, including a final rule by the Consumer Financial Protection Bureau aimed at reducing credit card late fees and protections against discriminatory practices in agriculture.
However, the effectiveness of these regulatory ambitions may encounter challenges, particularly in light of potential budgetary constraints for the DOJ's antitrust division, as suggested by recent developments in Congress. Despite the administration's support for bolstering antitrust enforcement, the proposed government funding deal indicates a significant shortfall from the requested budget, potentially impacting the division's capacity to pursue its rigorous agenda against corporate monopolies and ensure fair competition.
The White House's competition agenda, a cornerstone of Biden's domestic policy, is set to be a focal point in the coming days, with various events and the anticipated State of the Union address highlighting the administration's efforts to curb rising healthcare, housing, and general living costs through vigorous enforcement of competition laws.
As the administration embarks on this ambitious path, the interplay between regulatory intentions and practical enforcement capabilities, underscored by the task force's creation and the broader competition agenda, will be critical in shaping the landscape of corporate conduct and consumer protection in the United States.
