As consumers and businesses recover from the frenzy of holiday commerce and look ahead to the new year, the supply chain disruptions that grabbed headlines in late 2021 may seem like a distant memory. However, these issues are not yet a thing of the past, particularly in the eyes of regulators. Businesses must educate themselves about the federal and state regulations that are implicated by supply chain disruptions, and stay attuned to regulators’ signals regarding what these laws require — economic phenomena with global impact do not excuse non-compliance with state or federal regulations.
When supply chain disruptions, pandemic, inflation, or other forces converge to create the perfect storm of economic pressures, businesses need to stay vigilant to avoid attracting the attention of state regulators — specifically, state attorneys general — in addition to the FTC, CFPB, or other federal agencies. The potential risks include violation of state consumer laws that prohibit unfair and deceptive acts and practices, price gouging prohibitions, the FTC Act, and federal regulations promulgated thereunder such as the Mail, Internet, or Telephone Merchandise Order Rule or the Made in USA Standard, or even state and federal antitrust laws.
The FTC’s recent inquiry into supply chain disruptions provides clear evidence of regulators’ interest in how businesses are handling the current economic pressures. In late November 2021, the FTC ordered nine large retailers to…
