President Biden Launches Task Force to Address Unfair Corporate Pricing and Boost Consumer Impact
President Joe Biden is taking action to tackle “unfair and illegal” corporate pricing practices that he believes are preventing consumers from feeling the benefits of a strong economy and cooling inflation rates. On Tuesday, Biden will launch a new task force jointly led by the Federal Trade Commission (FTC) and the Department of Justice (DOJ), two agencies that have been at the forefront of the administration’s regulatory agenda.
The task force, called the Strike Force on Unfair and Illegal Pricing, will be co-chaired by FTC Chair Lina Khan and Assistant Attorney General for Antitrust Jonathan Kanter. Both leaders expressed their enthusiasm for the initiative, highlighting the FTC’s commitment to promoting competition and tackling unlawful business practices that inflate costs for Americans.
The launch of the task force comes as Biden convenes the sixth formal meeting of the White House Competition Council, a group of top officials tasked with addressing anti-competitive practices across various industries. National Economic Council Director Lael Brainard emphasized that supply chains have returned to normal and inflation has decreased over the past year. However, some corporations are not passing these savings on to consumers, prompting Biden to take action against unfair pricing practices.
As part of this ongoing effort, the Consumer Financial Protection Bureau will release a final rule aimed at reducing credit card late fees. Additionally, the Agriculture Department will introduce finalized protections for farmers against potentially discriminatory processing practices.
Biden’s crusade against unfair corporate pricing practices stems from his belief that they contribute to the public perception of a struggling economy, despite evidence of its strength. Brainard highlighted the council’s efforts in reducing costs across various sectors, including healthcare and travel.
However, there are still questions regarding the legal authority regulators have to address companies that engage in aggressive pricing strategies. A senior administration official acknowledged that there are existing statutes that can be utilized in certain situations to protect consumers from high prices, but the specific actions depend on the circumstances.
Biden has pointed to “price gouging” and “shrinkflation” as examples of pricing strategies that allow companies to maintain high profits even when wholesale and transportation costs decrease. While the narrative of a strong economy may be gaining traction among voters, Biden continues to face criticism for the elevated cost of living in the post-pandemic era.
Recent polls indicate growing economic optimism among respondents, but Biden still trails his likely November opponent, former President Donald Trump, in hypothetical general election matchups. Despite this, Biden remains committed to addressing unfair corporate pricing practices and ensuring that consumers benefit from a strong economy.
In conclusion, President Biden’s launch of a task force to address unfair corporate pricing and boost consumer impact demonstrates his commitment to promoting competition and tackling unlawful business practices. By convening the White House Competition Council and introducing new regulations, Biden aims to reduce costs for consumers and address public concerns about the economy. While challenges remain regarding the legal authority to address aggressive pricing strategies, Biden’s efforts reflect his determination to create a fairer marketplace for American consumers.
