Whole Foods protests FTC's regulation proposal

Whole Foods says FTC proposal to speed merger reviews would hurt businesses, consumers

The Associated Press

Monday October 27, 4:35 pm ET

Yahoo! Finance

PORTLAND, Ore. (AP) -- Whole Foods Markets Inc. said Monday that the Federal Trade Commission's proposed changes to its merger review process would be "bad policy" and "deprive businesses of due process."

The FTC said in late September that it wanted to make numerous changes to its rules to expedite the legal process surrounding mergers that fall under its oversight. The changes include limiting the time frame for the trial and discovery process, as well as changing the role of the administrative law judge in the process.

Whole Foods said the rules would create a one-size-fits-all approach that would not take into account the complexities of some cases, thereby leaving businesses unable to defend themselves against the FTC.

"This is not acceptable behavior by a regulatory agency that has such power over American businesses affecting millions of consumers," Lanny Davis, outside counsel to Whole Foods, said.

The FTC declined to comment.

The Austin, Texas-based natural grocer said the majority of the rules would not directly affect their pending dispute with the FTC over its acquisition of Wild Oats Markets. However, they said the rules, which they say set up unreasonable time frames, mirror their conflicts with the FTC.

"Everyone needs to be aware this is happening and they are trying to codify it for the future," said Eileen O'Connor, an attorney representing Whole Foods.

Whole Foods filed comments on the proposal Monday and urged other businesses to protest as well.

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