Executive Order Establishes Food Supply Chain Security Task Forces to Investigate Price Fixing and Anti-Competitive Behavior

The EO directs the Attorney General and the FTC Chair to each create a Food Supply Chain Security Task Force at the DOJ and the FTC, respectively. The Task Forces are directed to “take all necessary and appropriate actions to investigate food-related industries within their established areas of expertise and determine whether anti-competitive behavior exists in food supply chains in the United States, as well as whether control of food-related industries by foreign entities is increasing the cost of food products in the United States or creating a national or economic security threat to Americans.” Additionally, DOJ and FTC are directed to “take such actions as are necessary to remedy any anti-competitive behavior that their respective investigations uncover, including bringing enforcement actions and proposing new regulatory approaches.” Further, DOJ is directed to commence criminal proceedings, as appropriate, should its Task Force uncover any evidence of criminal collusion.

The Task Forces are directed to jointly brief the Speaker of the House of Representatives, the Senate Majority Leader, and the chairs of Congressional committees of jurisdiction on their progress and any recommended Congressional actions. The briefings must occur within 180 days and one year from the date of the EO.

The food industry has, in particular, been an area of focus in this recent era of aggressive antitrust enforcement. Companies operating in the food supply chain and their trade associations should anticipate increased scrutiny and the potential for investigation and enforcement activity, especially those with foreign ownership or those operating in sectors previously investigated or implicated in anti-competitive practices.

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We will continue to monitor implementation of this EO. Our antitrust and food regulatory teams have substantial experience defending companies that are the target of government investigations or litigation and are well positioned to advise any companies contacted by DOJ or FTC in connection with the Task Forces' investigations. Please do not hesitate to contact us about this or any other matter.

Authored by Maile Gradison.