In a robust move to combat rising prices, the Biden administration has launched a comprehensive effort, cracking down on credit card late fees and examining the role of private equity in healthcare deals. Led by the Justice Department and the Federal Trade Commission (FTC), a joint “strike force” will address illegal corporate behavior contributing to inflated prices through anticompetitive or fraudulent practices.
Simultaneously, the FTC, Justice Department, and the Department of Health and Human Services (HHS) have initiated an inquiry into the “impact of corporate greed in health care,” specifically focusing on transactions involving private equity. The inquiry seeks to understand the potential consequences of private equity deals on consolidation, patient health, workers’ safety, and affordable healthcare.
As part of these measures, the administration will finalize rules aimed at reducing credit card fees, cutting down from an average of $31 to $8, benefiting millions of cardholders. Additionally, regulations empowering ranchers and farmers in negotiations with meat-packers will be implemented.
These initiatives come in response to concerns about rising costs, and President Biden is expected to highlight these steps during the sixth meeting of the Competition Council. The administration has already successfully pressured companies like Airbnb and Live Nation to limit extra charges, contributing to an estimated annual reduction of more than $20 billion in such fees.
Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra highlighted that the credit card late fee limit will save American families $10 billion annually. The move addresses loopholes created in 2010, preventing credit card issuers from exploiting automatic inflation adjustments to escape federal bans on unreasonable fees.
In a related development, the Department of Agriculture’s final rule aims to establish clearer and more effective standards, prohibiting retaliation against producers in the livestock, meat, and poultry markets. These actions underscore the administration’s commitment to consumer protection and addressing economic challenges.
