Strike Force Discusses Grocery Prices, Price Gouging in Industries
The Federal Trade Commission and the Department of Justice virtually co-hosted the first public meeting of the Strike Force on Unfair and Illegal Pricing to discuss Strike Force enforcement actions taken to lower prices for Americans.
FTC Chair Lina M. Khan, DOJ Acting Associate Attorney General Benjamin Mizer, Assistant Attorney General Jonathan Kanter, and Principal Deputy Assistant Attorney General Brian Boynton, along with other agencies on the strike force convened to highlight the following enforcement actions:
Khan highlighted the FTC’s recent work to stop corporate lawbreaking that raises prices for Americans, including uncovering evidence of corporate conduct that may raise the price of gas, working to lower the cost of many asthma inhalers to just $35 out-of-pocket, and making it easier for Americans to cancel online subscriptions they don’t want. Chair Khan announced that she will ask the Commission to launch an inquiry into grocery prices in order to probe the tactics that big grocery chains use to hike prices and extract profits from everyday Americans at the checkout counter.
Mizer described DOJ’s efforts to tackle unlawful behavior that affects the prices Americans pay for their groceries, transportation, and health care. Kanter highlighted the historic and concrete actions Antitrust Division staff are undertaking to enforce the law and lower prices in higher education, housing, transportation, food, agriculture, live music, healthcare and other vital industries.
Boynton highlighted the Civil Division’s work to combat fraudulent pricing schemes involving government agencies and financial institutions, as well as schemes designed to defraud consumers through unfair and deceptive marketing or billing practices.
U.S. Department of Agriculture Deputy Secretary Torres Small highlighted the all-of-USDA approach to tackling food and agricultural pricing challenges for farmers and consumers alike, including an ongoing investigative study on retail concentration and market practices as well as landmark efforts to modernize the Packers & Stockyards Act rulebook and build a competition partnership with state attorneys general.
U.S. Department of Health and Human Services Deputy Secretary Andrea Palm spoke on HHS’s work to make health care affordable, transparent, and fair for everyone. Increasing competition and transparency, lowering prescription drug prices, and expanding access to health care are key ways to make sure our health care system is working for all Americans.
Acting U.S. Department of Transportation General Counsel Subash Iyer spoke about DOT’s work to protect airline passengers from unfair practices that can make it more expensive to fly, including by proposing a ban on family seating junk fees and investigating Delta’s refund, reimbursement, and customer service problems during the recent IT meltdown.
U.S. Securities and Exchange Commission Chair Gary Gensler spoke about the SEC’s work to address unfair, deceptive, and anticompetitive business practices. The SEC is the cop on the beat for the securities markets. The agency’s rulemaking projects promote transparency, access, and fair dealing in the markets. And through market oversight, including examining registrants and reviewing tens of thousands of filings each year, the SEC guards against fraud and deceptive practices and promotes competition.
U.S. Federal Communications Commission Chairwoman Jessica Rosenworcel spoke about the FCC’s work to tackle unfair and deceptive pricing tactics in the communications sector, including by implementing new rules that will slash the exorbitant rates that incarcerated people and their families pay to stay connected.
Consumer Financial Protection Bureau Director Rohit Chopra spoke about the CFPB’s work on junk fees, highlighting a report on school lunch fees, and a recently launched inquiry into junk fees in mortgage closing costs. The CFPB continues its work on all aspects of the credit card market, including looking into bait-and-switch rewards tactics, curbing excessive fees, and ensuring competition, all against the backdrop of interest rate margins hitting an all-time high. Additionally, the agency announced further scrutiny on the role of private equity investors in price gouging.
In March 2024, at the sixth meeting of the White House Competition Council, President Biden announced the launch of the Strike Force to strengthen interagency efforts to root out and stop illegal corporate behavior that hikes prices on American families through anti-competitive, unfair, deceptive, or fraudulent business practices.
The Federal Trade Commission works to promote competition, and protect and educate consumers. The FTC will never demand money, make threats, tell you to transfer money, or promise you a prize. You can learn more about how competition benefits consumers or file an antitrust complaint. For the latest news and resources, follow the FTC on social media, subscribe to press releases and read our blog.
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FDA Rules Tara Flour Fails to Meet GRAS Standard
The U.S. Food and Drug Administration has determined that tara flour in human food does not meet the Generally Recognized As Safe (or GRAS) standard and is an unapproved food additive. The FDA’s assessment of the ingredient is detailed in a memo added to the agency’s public inventory. Increased transparency of our assessment of ingredients in the food supply is part of our approach to enhance food chemical safety.
Under the Federal Food, Drug, and Cosmetic (FD&C) Act, any ingredient used or intended for use in food must be authorized by the FDA for use as a food additive unless that use is Generally Recognized As Safe or GRAS by qualified experts or meets a listed exception to the food additive definition in the FD&C Act. An unapproved food additive is deemed to be unsafe under the FD&C Act.
In 2022, Daily Harvest used tara flour in a leek and lentil crumble product which was associated with roughly 400 adverse event reports. The firm took prompt action to voluntarily recall the product and conduct its own root cause analysis, during which they identified tara flour as a possible contributor to the illnesses. To date, the FDA has found no evidence that tara flour caused the outbreak; however, it did prompt the agency to evaluate the regulatory status of this food ingredient.
The FDA’s evaluation revealed that there is not enough data on the use of tara flour in food, or a history of its safe use, to consider it GRAS. There is no food additive regulation authorizing the use of tara flour in food. Uses of food ingredients that are not GRAS, not authorized as food additives, and not excepted from the Federal Food, Drug, and Cosmetic (FD&C) Act’s food additive definition are unapproved food additives. Food that is, or contains, an unsafe food additive is considered adulterated.
Manufacturers who are considering using tara flour as an ingredient in food are responsible for ensuring that its use is safe and lawful and are encouraged to consult with the FDA. At this time, the FDA is not aware of evidence that shows that tara flour is a food ingredient being developed domestically or that there are any products containing tara flour that are currently being manufactured in the United States.
The FDA instituted screening at ports of entry for tara flour used as an ingredient in imported food or imported for sale in bulk. The agency has not detected any recent shipments of that flour in imported products as of today.
The FDA remains committed to monitoring new ingredients in the food supply to ensure they meet relevant safety standards. The FDA’s assessment of chemicals in the food supply is part of our commitment to food safety and public health.
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USDA Finalizes Policy on Declaring Salmonella in Raw Breaded Stuffed Chicken Products
The U.S. Department of Agriculture’s Food Safety and Inspection Service has made its final determination to declare Salmonella an adulterant in raw breaded stuffed chicken products when they exceed a specific threshold (1 colony forming unit per gram or higher) for Salmonella contamination.
This final determination is part of FSIS’ broader efforts to reduce Salmonella illnesses associated with the raw poultry supply in the United States. FSIS intends to address Salmonella contamination in other raw poultry products later this year.
“Under President Biden’s leadership, USDA is taking significant steps toward keeping American consumers safe from foodborne illness,” said Agriculture Secretary Tom Vilsack. “This final determination marks the first time that Salmonella is being declared an adulterant in a class of raw poultry products. This policy change is important because it will allow us to stop the sale of these products when we find levels of Salmonella contamination that could make people sick.”
Under this determination, FSIS will consider to be adulterated any raw breaded stuffed chicken products that include a chicken component that tested positive for Salmonella at 1 CFU per gram or higher.
FSIS will carry out verification procedures, including sampling and testing of the raw incoming chicken component of these products prior to stuffing and breading, to ensure producing establishments control Salmonella in these products. If the chicken component in these products does not meet this standard, the product lot represented by the sampled component would not be permitted to be used to produce the final raw breaded stuffed chicken products. The determination, including FSIS’ sampling and verification testing, will be effective 12 months after its publication in the Federal Register.
In determining that Salmonella is an adulterant in raw breaded stuffed chicken products, FSIS considered the best available science and data using similar criteria as in its 1994, 1999, and 2011 E. coli policymaking. When FSIS declared seven Shiga toxin-producing Escherichia coli strains to be adulterants in select raw beef products, it relied on several factors, including the available information on serotypes linked to human illnesses, infectious dose, severity of illnesses and typical consumer preparation practices associated with a product. The breaded stuffed chicken products determination relied on the same factors.
FSIS and its public health partners have investigated 14 Salmonella outbreaks and approximately 200 illnesses associated with these products since 1998. The most recent outbreak was in 2021 and resulted in illnesses across 11 states. These products account for less than 0.15% of the total domestic chicken supply, but outbreaks linked to these products represented approximately 5% of all chicken-associated outbreaks in the U.S. during 1998-2020.
Raw breaded stuffed chicken products are pre-browned and may appear cooked, but the chicken is raw. The products are typically cooked by consumers from a frozen state, which increases the risk of the product not reaching the internal temperature needed to destroy Salmonella. Despite FSIS’ and industry’s efforts to improve labeling, these products continue to be associated with Salmonella illness outbreaks.
The Centers for Disease Control and Prevention estimates that Salmonella bacteria cause over 1 million human infections in the United States each year. Food is the leading source of Salmonella infections and poultry products are one of the leading sources of foodborne Salmonella illnesses.
FSIS will continue to evaluate and, if necessary, refine its policies and standards related to the oversight of raw breaded stuffed chicken products as advances in science and technology related to pathogen levels, serotypes, laboratory methods and infectious dose become available.
This final determination builds on USDA’s continued efforts under the Biden-Harris Administration to protect American consumers, whether to ensure food safety or prevent false and misleading label claims. Earlier this year, USDA published a final rule allowing the voluntary “Product of USA” claim to be applied only to those FSIS-regulated products that are derived from animals born, raised, slaughtered and processed in the United States. USDA is currently re-evaluating the FSIS guideline for animal-raising claims to better ensure that they are adequately substantiated.
To view the final determination, visit the FSIS Federal Register Rules webpage.
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