A Brazen Corporate Miscreant

The Justice Department and the federal regulatory agencies have been less than energetic in prosecuting corporate crime and misconduct lately, so it was interesting to see the DOJ announcement that it had gotten Wells Fargo to fork over $2 billion to resolve a case involving mortgage-backed securities.

Before thinking that the Trump Justice Department is getting tougher on business offenders, it is important to keep in mind that this is a holdover matter from the prosecution of the big banks by the Obama DOJ in the wake of the financial meltdown. Most of the other banks settled their toxic securities cases long ago.

Wells held out and has now been rewarded by the Trump DOJ with a settlement that is substantially smaller than the ones that preceded it. JPMorgan Chase settled for $13 billion in 2013 and Bank of America for $16 billion the following year.

If anything, Wells should have been forced to pay out more to penalize it for its resistance. Moreover, during the years since its competitors resolved their cases, a tsunami of negative revelations have occurred regarding the other misconduct of Wells.

In fact, it has almost seemed that Wells was in a contest with Volkswagen to be crowned the most brazen corporate miscreant. Nearly two years ago, the scandal erupted regarding the bank’s widespread practice of secretly opening vast numbers of unauthorized customer accounts in order to generate illicit fees (the number of bogus accounts would turn out to be several million). This was followed by a series of other allegations such as charging 800,000 car loan customers for insurance they did not need.

Earlier this year, the Federal Reserve took the unprecedented step of barring Wells Fargo from growing any larger until it cleaned up its business practices. The agency also announced that the bank had been pressured to replace four members of its board of directors.

The actions of Wells were so egregious that even Mick Mulvaney, who took over the Consumer Financial Protection Bureau with the aim of defanging it, agreed in April to have the agency join with the Office of the Comptroller of the Currency to fine the bank a total of $1 billion for selling unnecessary products to customers and other improper practices.

The recent misdeeds of Wells share characteristics with the behavior outlined in the DOJ’s case. The bank appears to have been just as systematic and shameless in its deceptive mortgage practices as it was in generating bogus accounts. It seems that Wells managed to incorporate fraud into its business model in a seamless manner.

If any defendant was undeserving of preferential treatment, Wells Fargo is it.

Corporate Impunity

In the early days of the Trump era, there was speculation that the new administration would be tough on corporate crime. Attorney General Jeff Sessions gave a speech in April 2017 in which he vowed that his Justice Department “will continue to investigate and prosecute corporate fraud and misconduct; bribery; public corruption; organized crime; trade-secret theft; money laundering; securities fraud; government fraud; health care fraud; and Internet fraud, among others.’ He added that DOJ has “a responsibility to protect American consumers.”

A new report from Public Citizen and the Corporate Research Project of Good Jobs First called Corporate Impunity shows just how hollow that promise was. Based on data from Violation Tracker, it shows that during the first year of the Trump Administration there was a substantial drop in regulatory enforcement and prosecution of corporate criminal offenses. In contrast to the zero-tolerance attitude toward migrants and refugees, the administration is showing considerable indulgence when it comes to corporate offenders.

In making a comparison to the previous administration, it is worth recalling the mixed record of the Obama years. That administration had a poor record with regard to holding top corporate executives personally responsible for serious offenses such as the abuses leading to the financial meltdown and the Deepwater Horizon oil spill disaster in the Gulf of Mexico. It continued the misguided policy of offering corporate miscreants deferred-prosecution and non-prosecution agreements.

Yet at least the Obama Administration took steps to increase the financial penalties levied on corporations for their misdeeds. For the first time, billion-dollar fines and settlements became a common occurrence.

Corporate Impunity judges the Trump Administration by that same measure—the level of monetary penalties imposed on companies. It finds, for example, that such penalties imposed by the Trump DOJ in its first year were less than one-tenth the level in each of the last two years of Obama.

The report limits its analysis of regulatory agencies to those which were headed by a Trump appointee for most of 2017. Of the 12 agencies examined, ten showed a decline in the number of enforcement actions. In some cases, those drops were steep. The Federal Trade Commission and the Securities and Exchange Commission had decreases of more than 40 percent, and five others dropped more than 25 percent.

For some agencies, the decline in the number of cases was much less severe than the drop in penalty amounts. At the Environmental Protection Agency, for example, the caseload in Trump’s first year was down 12 percent while the penalty total plunged more than 90 percent.

The results for Trump’s second year are likely to be even more dismal once results are tabulated for agencies such as the Consumer Financial Protection Bureau, which racked up an impressive record during the Obama years and attempted to do the same under Trump until the agency was captured in late 2017 by the White House and subsequently neutered.

Trump’s enforcement record shows that he really is a populist—a corporate populist creating a society in which large companies reign supreme and in many ways are above the law.

The Benefits of Hubris

As customary restraints on corporations and high-level public officials increasingly fall by the wayside in Trump’s America, we may have to rely on the likelihood that their greed will cause them to go simply too far.

That’s what happened with Scott Pruitt at the EPA: he ultimately brought about his own undoing through his inability to limit his covetousness for things large and small. The unbridled pursuit of self-interest may yet bring about the downfall of other Administration figures such as Jared Kushner and Wilbur Ross.

In a remarkable development, overreach also appears to be dooming a major media merger: the audacious effort by Sinclair Broadcast to take over Tribune Media and achieve a virtual stranglehold over local television broadcasting in the United States.

Sinclair seemed to have it made. The company embraced Trump during the 2016 campaign and offered itself up as a propaganda arm of the new administration, hiring Trump crony Boris Epshteyn to produce unabashedly pro-MAGA commentaries that the company compelled its affiliates to air.

The acquisition of Tribune, announced in May 2017, would have given Sinclair an unprecedented share of the local TV market, yet it appeared that the deal would sail through the Federal Communications Commission now that the agency was headed by Trump-appointed regulatory zealot Ajit Pai. Among the rules Pai was eager to eliminate were those involving ownership limits.

Sinclair, however, overplayed its hand. Rather than rubber-stamping the deal, the FCC has just decided to refer it to an administrative law judge, a move that is widely expect to doom the merger.

The company gave the agency little choice when it engaged in a dubious maneuver in its proposal on how to satisfy remaining ownership rules. While claiming that it would divest 23 stations, Sinclair would actually retain operational control over those properties. The FCC’s order suggested that the company’s proposal may have included “misrepresentation or lack of candor.” Translation: Sinclair is a big fat liar.

An article in Politico, describing what it called “a tale of stunning hubris,” quoted a broadcast industry official as saying: “Sinclair’s style in Washington is Exhibit A of how to squander the most favorable regulatory environment in decades.”

While this is a major setback for Sinclair, the defeat of the merger is a boon for media diversity. It is also a hopeful sign amid the deregulatory onslaught and corporate empowerment that have marked so much of the first year and a half of the Trump Administration.

It would be preferable if public interest groups could defeat business abuses directly, but for now we may have to stand by and wait for corporate hubris to do the job for us.

Turmoil On the Road to Autarky

Donald Trump got elected in 2016 essentially by promising everything to everyone except immigrants and environmentalists. In the economic realm he vowed to resurrect dying industries such as coal, to achieve trade supremacy over the rest of the world, to dismantle the regulatory state, and to bring about growth rates not seen for decades. Now those corporate executives who sold their soul to Trump are realizing he cannot deliver on all those promises.

This is most apparent with regard to trade. Companies such as Harley-Davidson and General Motors are complaining about the consequences of Trump’s ham-handed use of tariffs, which instead of bringing about concessions from U.S. trading partners are prompting retaliatory moves. A front-page story in the New York Times headlined “Industries in U.S. Feel Undermined by Trade Policies” states: “Even as the president’s pro-business stance is broadly embraced by the corporate community, in some significant cases the very industries that Mr. Trump has vowed to help say that his proposals will actually hurt them.”

This epiphany took a while to happen because most of Trump’s previous dubious initiatives were domestic in nature. Large corporations stood by as the administration and Congressional Republicans went after the Affordable Care Act because the main victims were individuals who did not get employer-sponsored coverage but were not poor enough to qualify for Medicaid. They went along with the tax bill because it enriched them handsomely even as it set the stage for future fiscal distress. They were largely silent as Trump’s plans to rebuild infrastructure and to address the opioid crisis fizzled out.

Yet trade involves other countries, whose leaders and citizens are a lot less in thrall to Trump and don’t seem to take his bullying routine very seriously. Even mild-mannered countries such as Canada are showing plenty of backbone. Meanwhile, countries such as China, which have engaged in unfair practices that should be addressed in a more coherent way, are able to take the moral high ground.

While Trump is not budging, this foreign resistance is starting to close markets and raise costs for a long list of domestic industries. Globalized companies cannot afford to follow Trump on the road to autarky. For some big firms the European market, for instance, is as important or even more important than the domestic one.

Yet it is not clear that Corporate America is willing to stand up to Trump in a major way. Rather than challenge the president directly, they may simply shift investment and sourcing to lessen the impact of the trade barriers. We need not worry too much about GM and Harley.

The problem is that the trade standoff will eventually take its toll on the U.S. economy as a whole, threatening the delicate balance of low unemployment and mild inflation while hastening the arrival of the next recession. And that will hurt Trump’s individual supporters a lot harder than his corporate backers.

The Skullduggery Continues

Donald Trump seems to live in a world in which there is global trade but no foreign direct investment. He recently denounced BMW imports at a South Carolina rally while ignoring the German automaker’s production facility a short distance away in Spartanburg, which has been in operation since 1994.

The president also seems to be less than fully informed when it comes to the foreign operations of U.S. corporations. He has been berating Harley-Davidson for announcing plans to shift some production to Europe to circumvent the tariffs the EU is imposing on selected American products in response to Trump’s trade policies. In his tweet tirade, Trump demand that Harleys “never be built in another country—never.”

In fact, Harley already has offshore production facilities. One of those is in India, which was originally announced in connection with President Obama’s November 2010 trip to that country to promote U.S. commercial interests. Republicans denounced the trip, not because of job offshoring but rather because of exaggerated reports of the cost of the delegation.

Harley initially used the Indian operation to assemble bikes shipped in knocked-down form from U.S. plants, but later it began using locally produced components. In 2012 Harley outsourced much of its IT work to the Indian company Infosys, some of whose employees on the account worked in the U.S. There were reports in 2014 that Harley IT workers were being asked to train Infosys employees on H-1B visas who were replacing them.

The company also has an assembly facility in Brazil and a manufacturing plant in Australia that produces high-finish wheels. In its 10-K filing Harley states: “The motorcycles assembled at the Company’s international facilities have the same authentic look, sound, feel and quality of a motorcycle manufactured by the Company’s U.S. facilities.” Moreover, Harley announced earlier this year that it is shifting some production from a plant in Kansas City to one in Thailand.

The Harley situation is just the latest in a series of tiffs between Trump and large corporations in which it is difficult to support either side. Harley certainly needed to be called out for engaging in more and more offshore outsourcing while continuing to promote an all-American image.

Trump’s criticism of the company, however, is far from coherent. It seems to be based mostly on his feeling that he was personally betrayed by a firm that he touted as a symbol of American greatness. Trump seems to have picked a fight with Harley in the same way he has gone after other companies, starting with Carrier soon after his election. He has done so mainly to burnish has own tough-guy image while in the end failing to extract any real concessions. The same goes for is supposed battles with pharmaceutical producers, aerospace manufacturers, automakers and others.

Trump’s objective is to give the impression he is taking a hard line against big business, while he is actually catering to every desire of corporate America when it comes to regulation and taxes. It is the flip side of his posture toward workers, in which he pretends to be their defender but is in reality undermining employment safeguards and labor rights. How long can the skullduggery continue?

Bayer and Monsanto: Another Dubious Chemical Industry Marriage

If the chemical industry spent as much time on product safety as it does on corporate restructuring, the world would be a healthier place. In 2015 DuPont spun off a bunch of its operations with tainted environmental and safety records into a new company called Chemours. Then DuPont engineered a merger with its longtime rival Dow Chemical, which had its own checkered history, to form DowDuPont. The combined company is now making more structural adjustments.

More changes are in the works in connection with the recently completed merger of German chemical giant Bayer and Monsanto. This is another case of a marriage between two highly controversial corporations.

Bayer was one of the German companies that combined in the 1920s to form IG Farben, which would go on to use slave labor during the Nazi period and was then split up after the Second World War. The largest of the resulting companies were Bayer, BASF and Hoechst (now part of Sanofi).

As Bayer has stepped up its U.S. involvement over the past two decades it has gotten embroiled in one scandal after another. In 1997 one of its subsidiaries based in New Jersey pled guilty to criminal price-fixing and had to pay a $50 million fine. In 2000 Bayer had to pay $14 million to the federal government and the states to settle allegations that it inflated prices on drugs sold to the Medicaid program. In 2001 it was accused of price-gouging on the antibiotic Cipro, which was then in high demand because of the anthrax scare. It later had to pay $257 million to settle a federal lawsuit on Cipro overcharging.

In 2003 documents emerged suggesting that Bayer was aware of serious safety problems with its cholesterol drug Baycol long before the medication was withdrawn from the market. In 2004 Bayer had to pay a $66 million fine in another criminal price-fixing case. A 2008 explosion at a Bayer pesticide plant in West Virginia that killed two workers led to regulatory penalties including a $5.6 million settlement with the EPA. A report found that management deficiencies played a significant role in creating the conditions that caused the explosion. Environmental and workplace safety fines have continued in recent years.

Monsanto, now absorbed into Bayer, was long one of the most hated corporations in the United States, due to the hardball tactics its employed in marketing genetically modified seeds and Roundup herbicides to farmers. It brought aggressive lawsuits against farmers accused of violating its patents. The company somehow managed to avoid antitrust charges, but in 2016 it was fined $80 million by the Securities and Exchange Commission for accounting violations relating to Roundup.

Bayer’s pursuit of Monsanto is part of its effort to brand itself as a life sciences company rather than merely a chemical producer. Its three main divisions are Crop Science, Pharmaceuticals and Consumer Health (the latter being what used to be known as over-the-counter medications such as aspirin, which Bayer is credited with inventing).

Of these, the most problematic is crop science. Bayer, along with DowDuPont and ChemChina (which bought Syngenta), increasingly dominate world markets for seeds, pesticides and related agribusiness products, giving them unprecedented control over the global food supply. This may give us a headache no amount of aspirin can relieve.

Trump’s War on Workers

Donald Trump’s blue-collar supporters may like what they are seeing on Fox News, but when they arrive at work the MAGA revolution is nowhere to be found. Far from empowering labor, the Trump Administration’s employment policies are heavily skewed toward management.

The aspect of this I’ve been focusing on lately are wage and hour issues. Recently my colleagues and I at the Corporate Research Project and Jobs With Justice published Grand Theft Paycheck, a detailed look at wage theft by large corporations. We found that major employers in a wide range of industries continue to pay out large sums in collective action lawsuits, which indicates that they continue to violate the Fair Labor Standards Act by compelling employees to do off-the-clock work and denying them proper overtime pay.

Such litigation may soon be a thing of the past. There are signs that collective actions are failing in the wake of the U.S. Supreme Court’s Epic Systems ruling, written by Trump nominee Neil Gorsuch, affirming the right of employers to use mandatory arbitration to block group lawsuits. For example, a federal judge in California told a group of Domino’s Pizza drivers that they had to use arbitration rather than litigation to resolve their claims against franchise owners.

At the same time, instead of intensifying enforcement by the Wage and Hour Division, Trump’s Labor Department is promoting a new approach based on corporate self-audits and fewer fines. Allowing employers to operate on the honor system is just another way of weakening enforcement.

A new report from the National Employment Law Project shows that the Trump DOL is also reducing enforcement of workplace safety and health rules.  NELP found that OSHA enforcement activity in FY2017 was down compared to the previous year. The decline was even more pronounced during the first five months of FY2018, when the number of enforcement units (the measure used by OSHA) fell by more than 7 percent. This trend is likely to worsen, since NELP notes that the number of OSHA inspectors has been declining.

Federal workers are facing an assault of their own. Trump recently announced plans to overhaul rules affecting more than two million employees, making it easier to discipline and fire them. The move also includes an attack on federal unions through stricter limits on the amount of time grievance officers and other activists can spend on union activity during working hours.

The next blow will come in the Supreme Court, which is expected to issue a decision soon in the Janus case that blocks the ability of public sector unions to collect fees from employees who decline to join but still benefit from collective bargaining agreements and other protections negotiated by those unions. Such a ruling could have a devastating financial impact on public unions.

As bad as all this sounds, it could boomerang on Trump and his corporate allies. More workers may follow the example of the teacher wildcat strikes and put their faith in self-organization rather than a demagogue.

Grand Theft Paycheck

For the past two decades, Walmart has repeatedly been accused of compelling workers to perform certain tasks off the clock and has paid numerous fines for those practices. It is often suggested that the retailer is an anomaly, acting more like a fly-by-night sweatshop than a corporate giant.

I recently completed a research project showing that, on the contrary, off-the-clock work, denial of overtime pay through misclassification and other forms of wage theft are pervasive in American big business. After digging through court records for much of the past year, I found more than 1,200 successful wage and hour lawsuits against hundreds of the country’s largest employers. These collective action suits have yielded some $8.8 billion in settlements and verdicts in the period since 2000. The same group of corporations have paid around $400 million in fines to the U.S. Department of Labor.

These findings are contained in Grand Theft Paycheck, a report just published by the Corporate Research Project of Good Jobs First and the Jobs With Justice Education Fund. The data has also been incorporated into Violation Tracker.

Among the dozen most penalized corporations, Walmart, with $1.4 billion in total settlements and fines, is the only retailer. Second is FedEx with $502 million. Half of the top dozen are banks and insurance companies, including Bank of America ($381 million); Wells Fargo ($205 million); JPMorgan Chase ($160 million); and State Farm Insurance ($140 million). The top 25 also include prominent companies in sectors not typically associated with wage theft, including telecommunications (AT&T); information technology (Microsoft and Oracle); pharmaceuticals (Novartis); and investment services (Morgan Stanley and UBS).

Due to Walmart, retailing is the industry with the highest aggregate penalties ($2.7 billion) imposed on large companies. It is followed by financial services ($1.4 billion); freight and logistics ($828 million); business services ($611 million); insurance ($557 million); miscellaneous services ($486 million); healthcare services ($417 million); restaurants and foodservice ($397 million); information technology ($335 million); and food and beverage products ($315 million).

More than 100 large corporations have paid penalties in three or more collective action lawsuits. Bank of America and its subsidiaries did so two dozen times.

Although there are fluctuations from year to year, the lawsuit penalty total reached a high of $1.3 billion in 2016. The tally in 2017 was $732 million, the fourth-largest yearly total.

There have been seven individual settlements in excess of $100 million, including the $640 million omnibus settlement by Walmart of more than 60 lawsuits and two FedEx settlements each in excess of $200 million. Since collective actions are usually settled before trial, there are few verdicts. But Walmart leads in that category too, with a judgment of $242 million. It has also paid the largest single fine: $33 million to the U.S. Labor Department.

The occupations represented in wage theft lawsuits range from low-wage jobs such as cashiers, cooks and security guards to higher-paid positions such as package delivery drivers, nurses, pharmaceutical sales representatives, and financial advisors.

The totals and rankings are based on penalties that were publicly disclosed, though the report documents 127 cases involving 89 large companies that petitioned courts to keep the details of their wage theft settlements confidential. AT&T, Home Depot, Verizon Communications, Comcast, Lowe’s and Best Buy each had multiple sealed settlements.

Of the ten most penalized industries, all but two—freight and information technology—employ large numbers of women, according to the Bureau of Labor Statistics. Several of these industries—especially business services, insurance and healthcare services—are predominantly female. In about half of these top ten industries, the percentage of Black and Latino workers is greater than in the workforce as a whole. For example, Black workers account for about 12 percent of the overall workforce but 20 percent of the labor force in business support services and 17 percent in freight. Latino workers account for about 17 percent of the overall workforce but about 25 percent in restaurants and foodservice and 29 percent in food and beverage production.

Many companies accused of wage theft are highly profitable. Among the dozen most penalized corporations, all but two had an annual net income of more than $2 billion in their most recent fiscal year. AT&T, JPMorgan Chase and Wells Fargo each had more than $20 billion in profits. These companies pay their chief executives generous salaries and bonuses. CEOs at AT&T, Bank of America, JPMorgan Chase and Walmart receive annual compensation of more than $20 million each.

Companies such as these can afford to pay their workers properly. It is time for Corporate America to remove wage theft from its business model.

Deep Corporate Conspiracy

Donald Trump and the rightwing fringe never tire of talking about supposed deep state plots. Yet if there is any conspiracy going on, it is the seeming attempt to remove any checks on the power of large corporations.

The latest evidence of this effort can be seen at the banking regulatory agencies and the Supreme Court. Only a decade after a financial crisis brought on by the excesses of the financial sector, the agencies are moving to eliminate the Dodd-Frank restriction on speculative trading practices by the large banks. The attack on the Volcker Rule ignores not only the role such practices played in the meltdown but the fact that the banks have been doing quite well despite the limitation. Last year JPMorgan Chase, for example, posted a profit of more than $24 billion.

Yet even more infuriating is seeing the Supreme Court justice nominated by a purported populist president cast the deciding vote and write the opinion in a ruling that will cripple the ability of workers to use the courts to address abusive employment practices.

The opinion by Justice Gorsuch in the Epic Systems case turns the clock back to a time of near total employer tyranny in the workplace by allowing corporations to mandate that disputes be resolved through the secretive and one-sided process of arbitration rather than class action lawsuits.

The ruling had a special significance for me, given that I have spent the past year doing extensive research about such lawsuits; specifically, wage and hour collective actions designed to combat off-the-clock work, denial of overtime compensation and other forms of wage theft. My colleagues and I will publish a report on the research next week, so I cannot provide the details now. Suffice it to say that the report is going to show that wage theft is a lot more pervasive in big business than is commonly understood.

When I began the research I thought I was documenting legal actions that would continue to be a key tool for addressing employment abuses. Now it may turn out that the report will be mainly of historical interest, describing the way large corporations used to be compelled to pay out substantial sums to compensate workers cheated out of their proper pay.

To make matters worse, the Supreme Court is expected to land another blow against the collective power of workers in its forthcoming ruling in the Janus case concerning public employee unions.

The weakening of regulation, class action litigation and unions provides an unprecedented boost in the ability of big business to call the shots in the workplace and in communities. The massive increase in profitability generated by the Republican tax bill makes large corporations even more mighty.

While this power grab is taking place, many corporations are trying to present themselves as part of the more enlightened sector of society. Walt Disney and Starbucks, for instance, want us to believe they are the anti-racist vanguard. This doesn’t always work: Wells Fargo, Volkswagen and Facebook face an uphill battle. Yet all too many firms have succeeded in projecting a benign image while engaging in corrupt behavior.

There is no easy way to remedy this situation, but we should not let the distractions emanating from the White House make us forget the larger problems.

Bumble Bee CEO Gets Stung

Corporate critics, myself included, have long complained about the unwillingness of federal authorities to hold top executives personally responsible for illicit practices at the businesses they run. It was thus surprising but encouraging to learn that the Justice Department Antitrust Division has gotten a grand jury to return an indictment against the chief executive of Bumble Bee Foods for participating in a conspiracy to fix prices of packaged seafood sold in the United States.

The case against Christopher Lischewski comes in the wake of the prosecution of the company itself, which last year agreed to pay a criminal fine of $25 million, which under certain circumstances could rise to more than $80 million. The investigation has also ensnared several other individuals, including two at Bumble Bee, which is owned by the British private equity firm Lion Capital, and one at rival Star Kist.

We can hope that these cases are a sign that the Trump Administration’s Antitrust Division is taking its job seriously. Since Trump took office, the division has announced several large penalties against foreign banks such as France’s BNP Paribas for manipulation of currency markets, but this was the continuation of an investigation that began under Obama.

Some other Trump era cases have been pretty minor, such as the $409,342 fine imposed on an e-commerce company for fixing the price of promotional wristbands.

Price manipulation relating to consumer and industrial products is a perennial form of corporate misconduct. It is one of the main business offenses that regularly involves criminal charges and results in guilty pleas.

In Violation Tracker we document 241 Antitrust Division cases against corporations that resulted in more than $10 billion in penalties. Looking at the list, one is struck by the fact that so many of the defendants are foreign firms, including 11 of the dozen biggest fines.

This is not to say that U.S. companies don’t fix prices. Probably the most famous price-fixing case ever was the conspiracy to manipulate the electrical equipment market by the likes of General Electric and Westinghouse in the 1950s. U.S. agribusiness giant Archer Daniels Midland was at the center of a lysine price fixing scandal in the 1990s.

It may be that in recent years federal antitrust prosecutors have felt pressure not to go after domestic companies, or else that foreign corporations are emboldened by the pro-business climate in the U.S. to engage in more brazen behavior.

In any event, at a time of unprecedented concentration of ownership in many U.S. industries, there is bound to be plenty of price collusion going on that needs to be investigated.