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Rep. Krishnamoorthi urges probe into price hikes
This comes after the Trump administration’s rollback of consumer protection enforcement measures.
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U.S. Representative Raja Krishnamoorthi (D-IL) answers questions during a news conference about the recent Congressional delegation trip to the Indo-Pacific region, on Capitol Hill in Washington, U.S. August 10, 2022. / REUTERS/Evelyn Hockstein/File Photo
Indian American Congressman Raja Krishnamoorthi (D-IL), Ranking Member of the Subcommittee on Health Care and Financial Services, called for federal consumer protection agencies to investigate rising costs of essential goods and services.
This comes after the Trump administration’s rollback of enforcement measures, which, according to Krishnamoorthi and his colleagues, have left American consumers vulnerable to corporate misconduct.
In a letter addressed to the heads of the Federal Trade Commission (FTC), Consumer Financial Protection Bureau (CFPB), and Department of Justice (DOJ), Krishnamoorthi and fellow Oversight Democrats urged immediate action against companies engaging in unfair and anti-competitive practices such as price gouging.
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Concerns over CFPB funding cuts and enforcement halt
The letter pointed to decisions by the Trump administration, including a Feb. 3 directive from Treasury Secretary Scott Bessent that halted all enforcement and regulatory activities at the CFPB including monitoring large banks, predatory lenders, and financial firms for illegal activity.
The lawmakers urged the agency to restore its operations, emphasizing that the CFPB had previously secured nearly $19.7 billion in relief for consumers through enforcement actions.
“We write regarding your decision to cease the vital work of the Consumer Financial Protection Bureau (CFPB) and cut off the agency’s funding. The CFPB saves Americans money every day by protecting consumers from unfair, deceptive, or abusive practices by financial institutions,” the lawmakers wrote.
FTC’s role in protecting consumers
Krishnamoorthi and his colleagues also called on the FTC to continue its enforcement actions against companies using deceptive practices to raise prices on necessities such as prescription drugs, groceries, and rent.
The lawmakers cited the FTC’s past actions under the previous administration, which included lowering out-of-pocket costs for inhalers from $500 to $35 and blocking a $24.6 billion Kroger-Albertsons merger that was expected to increase grocery prices, lead to store closures, and eliminate union jobs.
DOJ’s consumer protection mandate
The letter further urged the DOJ to continue prosecuting corporate practices that inflate consumer costs. Krishnamoorthi and his colleagues warned that Trump administration policies could weaken the DOJ’s ability to hold companies accountable for price manipulation.
“We write with concern the Trump Administration and its anti-consumer policies will undermine the critical mission of the Department of Justice (DOJ) as it works to enforce laws that protect Americans’ health, safety and economic security,” the letter stated.
The lawmakers pointed to DOJ’s previous investigations into the prescription drug market, the poultry industry, and large corporate landlords accused of artificially inflating rental prices nationwide.
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