Business Maverick: Warren Bill Would Require Companies to Explain Price Hikes

Legislation she’s drafted, obtained by Bloomberg News, would allow the Federal Trade Commission and state attorneys general more leeway to investigate sellers that charge excessive prices. The legislation also clarifies that price gouging anywhere in the supply chain is illegal.Warren’s bill is being introduced as consumer prices have been rising at the fastest rate in decades.

The US consumer price index rose 8.3% on an annual basis last month, the government reported Wednesday. The data indicated that the rising cost of shelter, food, airfare and new vehicles are among the biggest contributors to the elevated inflation, which may continue for months.The legislation would give the FTC even broader powers than those in a plan Senate Majority Leader Chuck Schumer released last month to go after gasoline price manipulation. That bill also faces long odds in the Senate.

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