FTC investigating whether or not child system makers engaged in collusion in state contracts

The Federal Commerce Fee (FTC) is investigating whether or not child system makers colluded on bidding for state contracts, company paperwork present.

The fee opened the probe final 12 months into bidding on state contracts for the Division of Agriculture’s Particular Supplemental Vitamin Program for Girls, Infants, and Kids (WIC), which gives free system to low-income households. The investigation was first reported by the Wall Street Journal on Wednesday.

In late January, the FTC requested info and paperwork from Abbott Laboratories, one in all solely three producers which have bid on WIC contracts since 1996. The fee later denied a request from the corporate to restrict the scope of the investigation, which was posted on the company web site in late April.

The fee mentioned in its request to Abbott that it was trying into “whether or not any firm that manufactures, markets, or sells Toddler Formulation Merchandise has engaged or is participating in any unfair technique of competitors.”

FTC Secretary April Tabor famous within the April response to Abbott that the WIC contracts could create incentives for collusion, the place “incumbent WIC contract holders agree to not bid in opposition to one another in order that they will proceed having fun with dominant positions in non-WIC markets of their respective states.”

An Abbott spokesperson mentioned in a press release that the corporate is cooperating with the FTC’s requests. Nevertheless, the corporate beforehand mentioned in its March petition to the fee that it was “unaware of any factual foundation to assist the WIC-related investigation.”