Federal Trade Commission orders information from large retailers
JONESBORO, Ark. (KAIT) - Nine retailers will soon have to hand over supply chain information to the Federal Trade Commission.
Kroger, Walmart, and Amazon are just a few.
The order comes after months of supply chain disruptions across the world.
After a year of many Americans not buying goods, retailers and wholesalers slowed production.
Fast forward to this year and demand is up, but supply is down.
As a consumer, there is not much for us to do about it, but sit back and wait for the shelves to stock up.
“So, all of a sudden, demand took off with a shot,” said Gary Latanich, retired Arkansas State University professor of Economics. “It is going to take some time to catch up. There are some problems there.”
Latanich said there are a couple of reasons for the supply chain delays.
Demand, workforce, freight costs, and port backlog.
“The best thing we can do is if there is a shortage of sausage, my favorite, I’ll do chicken. If there is a shortage of Cheerios, I’ll eat frosted flakes,” he said.
This is called product substitution. When there is not enough of one item, consumers will resort to another or just not buy either.
Latanich said retailers previously kept a stock of inventory for issues like this, but now items are produced as demand rises.
The companies ordered to give the FTC information have 45 days after they receive it to respond.
The order requires each company to put in detail why they are having trouble with filling up their shelves.
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