The new Strike Force on Unfair and Illegal Pricing will police price increases across consumer-facing markets, from retail to gas to credit cards and "junk fees"

Arising out of a March 2024 meeting of the White House Competition Council, President Biden announced the launch of a Strike Force on Unfair and Illegal Pricing designed "to strengthen interagency efforts to root out and stop illegal corporate behavior that hikes prices on American families through anti-competitive, unfair, deceptive, or fraudulent business practices."

At a joint conference on August 1, an alphabet soup of federal agencies explained the mission of the Strike Force—and consumer-facing firms should take notice! The Strike Force will be examining pricing in virtually every consumer-facing market—including medical services, gasoline, retail goods, airline pricing, junk fees, securities, credit cards, and more. The goal of the Strike Force is to curb the allegedly rising prices faced by American families.

The bottom line: Firms that are considering price increase strategies need to consider the current regulatory climate. Price increases that are implemented purely because there is a lack of competition may run the risk of heavy scrutiny. While prices for goods and services may continue to be governed by market/competitive considerations, costs, etc., the key takeaway here is that the Strike Force is on the lookout for prices or price increases that defy what it deems "reasonable" in terms of the marketplace—a standard that has yet to be defined.

Below is a summary of the remarks from the various agencies (taken from the FTC website):

• FTC Chair Lina M. Khan highlighted the FTC's recent work to stop corporate lawbreaking that raises prices for Americans, including uncovering evidence of corporate conduct that may raise the price of gas, working to lower the cost of many asthma inhalers to just $35 out-of-pocket, and making it easier for Americans to cancel online subscriptions they don't want. Chair Khan announced that she will ask the commission to launch an inquiry into grocery prices in order to probe the tactics that big grocery chains use to hike prices and extract profits from everyday Americans at the checkout counter.
• DOJ Acting Associate Attorney General Benjamin Mizer described DOJ's efforts to tackle unlawful behavior that affects the prices Americans pay for their groceries, transportation, and healthcare. Assistant Attorney General Jonathan Kanter highlighted the historic and concrete actions Antitrust Division staff are undertaking to enforce the law and lower prices in higher education, housing, transportation, food, agriculture, live music, healthcare, and other vital industries. Principal Deputy Assistant Attorney General Brian Boynton highlighted the Civil Division's work to combat fraudulent pricing schemes involving government agencies and financial institutions, as well as schemes designed to defraud consumers through unfair and deceptive marketing or billing practices.
• U.S. Department of Agriculture Deputy Secretary Xochitl Torres Small highlighted the all-of-USDA approach to tackling food and agricultural pricing challenges for farmers and consumers alike, including an ongoing investigative study on retail concentration and market practices as well as landmark efforts to modernize the Packers and Stockyards Act rulebook and build a competition partnership with state attorneys general.
• U.S. Department of Health and Human Services Deputy Secretary Andrea Palm spoke on HHS's work to make healthcare affordable, transparent, and fair for everyone. Increasing competition and transparency, lowering prescription drug prices, and expanding access to healthcare are key ways to make sure our healthcare system is working for all Americans.
• U.S. Department of Transportation Acting General Counsel Subash Iyer spoke about DOT's work to protect airline passengers from unfair practices that can make it more expensive to fly, including by proposing a ban on family seating junk fees.
• U.S. Securities and Exchange Commission Chair Gary Gensler spoke about the SEC's work to address unfair, deceptive, and anticompetitive business practices. The SEC is the cop on the beat for the securities markets. The agency's rulemaking projects promote transparency, access, and fair dealing in the markets. And through market oversight, including examining registrants and reviewing tens of thousands of filings each year, the SEC guards against fraud and deceptive practices and promotes competition.
• U.S. Federal Communications Commission Chairwoman Jessica Rosenworcel spoke about the FCC's work to tackle unfair and deceptive pricing tactics in the communications sector, including by implementing new rules that will slash the exorbitant rates that incarcerated people and their families pay to stay connected.
• Consumer Financial Protection Bureau Director Rohit Chopra spoke about the CFPB's work on junk fees, highlighting a report on school lunch fees, and a recently launched inquiry into junk fees in mortgage closing costs. The CFPB continues its work on all aspects of the credit card market, including looking into bait-and-switch rewards tactics, curbing excessive fees, and ensuring competition, all against the backdrop of interest rate margins hitting an all-time high. Additionally, the agency announced further scrutiny on the role of private equity investors in price gouging.

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