The National Grocers Association is applauding the release of a pair of bicameral letters urging the Department of Justice and the Federal Trade Commission to investigate discriminatory pricing and supply practices harming small and medium-sized businesses, particularly independent grocers that serve as essential anchors in communities across the country.
NGA says it commends the congressional letters for clearly recognizing that economic discrimination by dominant buyers undermines competition, restricts access to essential goods and tilts the playing field against local grocers and the communities they serve, while also affirming that renewed enforcement of long-standing antitrust laws, including the Robinson-Patman Act, can restore competition and address growing affordability concerns for American consumers.
Late last year, Senate Judiciary Chairman Chuck Grassley, R-Iowa, had the opportunity to visit Fareway Market headquarters in Johnston, Iowa, and received a firsthand look at what independent grocers experience daily, from less favorable pricing to limited access to supply and restrictive packaging terms that advantage national chains while raising costs for independent grocers and their customers, NGA says.
“We are exceptionally thankful for Senator Grassley’s dedicated leadership on this critical issue and for taking the time to listen to his constituents and see how this lack of antitrust enforcement has played out for the independent supermarkets in his own backyard,” says Chris Jones, chief government relations officer and counsel for NGA.
“Independent grocers are proud economic drivers in the American marketplace, but they cannot compete on uneven ground,” Jones says. “This effort highlights the real-world consequences of discriminatory pricing and supply practices that impose higher costs on family-owned businesses and their customers and drive concentration throughout the food supply chain. Unchecked market power harms producers, narrows choice and ultimately contributes to higher food prices at the checkout stand.”
For independent grocers to thrive in a fair market, NGA says consistent enforcement of existing antitrust laws is essential to ensure that competition is based on service and efficiency, not size and leverage, and that businesses of any size have a fair opportunity to succeed.
NGA says it looks forward to continuing to work with policymakers and antitrust enforcers to strengthen competition, protect the ability of local businesses to compete, support farmers and ranchers and ensure American families can get the best options at the lowest price for everyday essentials.
