The Federal Trade Commission (FTC) has submitted a comment in support of a proposed rule by the U.S. Department of Agriculture (USDA) aimed at protecting farmers, growers, ranchers, and consumers from unfair practices by dominant meat processors.
The USDA's proposed rule seeks to clarify what constitutes unfair practices under the Packers and Stockyards Act (PSA), which ensures fair competition and trade practices for farmers, ranchers, growers, and consumers.
The FTC's comment commends the USDA's efforts to eliminate confusion regarding PSA requirements. The comment emphasizes that imposing a stringent competitive injury requirement contradicts the PSA’s plain text. It argues that at a time when lower food costs and supply chain resilience are crucial, interpretations of the PSA should not hinder farmers' access to justice. According to the FTC's comment, the proposed rule correctly identifies that competitive injury is not necessary for a PSA violation based on its text and its relationship to the FTC Act.
Finalizing this rule is seen as an important step toward revitalizing the PSA to foster a fairer and more resilient food system, according to the FTC.
The Commission unanimously voted 5-0 in favor of submitting this comment to the USDA.
The Federal Trade Commission works to promote competition while protecting and educating consumers. The agency emphasizes that it will never demand money or make threats. More information about how competition benefits consumers or filing an antitrust complaint can be found through their resources. For updates, follow the FTC on social media or subscribe to their press releases and blog.
