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Lawmakers Call for More Investigations Into Grocery Chains’ Pricing: Report

Sen. Elizabeth Warren and Calif. Rep Adam Schiff purportedly send letter to FTC and USDA about misleading labels and price discrepancies
Lynn Petrak, Progressive Grocer
Senator Warren
Per NBC News, Elizabeth Warren co-authored a letter to the FTC and USDA imploring the agencies to investigate major grocery chains and their pricing practices.

Grocery prices were already a hot topic in the political discourse during a charged election season and remain top of mind heading into the last days. NBC News reported that two members of Congress, Massachusetts Sen. Elizabeth Warren and California State Representative and U.S. Senate candidate Adam Schiff, authored a letter to the U.S. Department of Agriculture (USDA) and Federal Trade Commission (FTC), urging the agencies to investigate large grocery companies for alleged price misrepresentation. The letter was signed by 14 other Congressional Democrats. 

[RELATED: Nearly Half of Consumers Say Inflation, Grocery Prices Will Impact Voting Decisions]

According to NBC News, the missive cites the recently-settled lawsuit between Albertsons Cos. and district attorney offices in seven California counties. In that case, the grocer did not acknowledge any wrongdoing but, in a move to clear the legal matter, agreed to pay $3.9 million in fines, a sum to be divided among the counties and their consumer protection programs, but not returned directly to shoppers. In their joint letter, Warren and Schiff questioned whether Albertsons violated the FTC Act and parts of the Fair Packaging and Labeling Act and expanded their critique to large food retailers. 

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The news outlet shared excerpts of the letter addressed to the FTC and USDA. It read in part, “Major grocery chains may be making false and misleading representations regarding food sold by weight, leading to customers paying more for groceries than expected … Too frequently, large grocery companies use their significant market power to hike prices for essential goods and take advantage of customers.”

The FTC, for its part, is awaiting a ruling in its legal bid to stop the proposed merger between The Kroger Co. and Albertsons. That decision could come any day, following a trial that wrapped in September.

As of Sept. 7, Albertsons Cos. operated 2,267 retail food and drug stores with 1,726 pharmacies, 405 associated fuel centers, 22 dedicated distribution centers and 19 manufacturing facilities. The Boise, Idaho-based company operates stores across 34 states and the District of Columbia under more than 20 well-known banners. Albertsons is No. 9 on The PG 100, Progressive Grocer’s 2024 list of the top food and consumables retailers in North America. Cincinnati-based Kroger serves more than 11 million customers daily through a digital shopping experience and retail food stores under a variety of banner names. The grocer employs 420,000 associates and is No. 4 on The PG 100.

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