FTC Supports USDA’s Efforts to Protect Farmers, Growers, Ranchers, and Consumers from Unlawful Conduct by Dominant Meat Processors

The Federal Trade Commission today submitted a comment supporting a U.S. Department of Agriculture (USDA) proposed rule to protect against unfair practices by dominant meat processors that can harm farmers, growers, ranchers, and consumers.

The USDA’s proposed rule seeks to clarify the scope of what constitutes unfair practices under the Packers and Stockyards Act (PSA), which assures fair competition and fair trade practices to protect farmers, ranchers, growers, and consumers.

The FTC applauds USDA’s push to revitalize the PSA by dispelling confusion about its requirements, the comment states. The comment notes that imposing a difficult-to-meet competitive injury requirement is counter to the plain text of the PSA. At a time when lower food costs to consumers and supply chain resilience are critically needed, interpretations of the PSA should not put access to justice out of reach for farmers. The proposed rule correctly recognizes that, based on the PSA’s plain text and its relationship to the FTC Act, competitive injury is not required for a PSA violation.

Finalizing the proposed rule is an important step toward revitalizing the PSA to promote a more fair, free, and resilient food system, the FTC said in its comment.

The Commission voted 5-0 to submit the comment to the USDA.