Sec. 401. Findings
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Congress finds the following: Families across the United States face persistently high prices for meat, which contribute significantly to overall food costs and household financial strain. Concentration and limited competition in meat supply chains and retail markets can facilitate unfair and unjustly discriminatory pricing practices, including price discrimination that disadvantages certain retail grocers and the communities they serve. Unfair and unjustly discriminatory prices and price discrimination for meat products can result in higher prices, reduced availability, and fewer choices for consumers, particularly in rural areas, low-income communities, and communities already experiencing limited grocery access.
Section 406 of the Packers and Stockyards Act, 1921 ( 7 U.S.C. 227 ), confers authority on the Commission with respect to the retail sale of meat, meat food products, and livestock products in unmanufactured form. Under section 406 of the Packers and Stockyards Act, 1921 ( 7 U.S.C. 227 ), the Commission may exercise its authority, including its authority under the Federal Trade Commission Act, to prevent unfair methods of competition and unfair or deceptive acts or practices in or affecting commerce in connection with such retail sales.
The authority extends to conduct that results in unfair and unjustly discriminatory retail meat prices and to price discrimination in meat, which drives prices higher for independent, smaller, or neighborhood grocery stores, where such conduct constitutes an unfair method of competition or an unfair or deceptive act or practice. Section 5 of the Federal Trade Commission Act ( 15 U.S.C. 45 ) declares unlawful unfair methods of competition and unfair or deceptive acts or practices in or affecting commerce and authorizes the Commission to prevent such conduct through investigations, administrative proceedings, and judicial enforcement, including with respect to retail and wholesale sales of meat, meat food products, and livestock products in unmanufactured form where such sales are in or affect commerce.
The Commission's authority under section 5 of the Federal Trade Commission Act ( 15 U.S.C. 45 ), including as informed by its policy statements and enforcement precedent, provides an important tool to challenge unfair methods of competition, coordinated conduct, exclusionary practices, and unfair or deceptive acts or practices in retail and wholesale meat markets that may drive up prices, restrict output, or otherwise harm consumers, small and independent grocers, and fair competition.
Congress intends that the Commission fully and proactively utilize its authority under section 406 of the Packers and Stockyards Act, 1921, its authority under Section 5 of the Federal Trade Commission Act ( 15 U.S.C. 45 ), and all other applicable laws, to identify, prevent, and remedy unfair and unjustly discriminatory retail and wholesale meat prices and price discrimination that harms consumers, honest businesses, and competition. The authority of the Commission under section 6(b) of the Federal Trade Commission Act ( 15 U.S.C. 46(b) ) to require reports and answers to specific questions from persons, partnerships, and corporations enables the Commission to study and report on market structure, pricing practices, and competitive conditions in retail and wholesale meat markets, thereby informing effective enforcement and policymaking.
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