Independent Grocers Applaud FTC’s Enforcement of Robinson-Patman Act
Independent grocers have expressed their support of the Federal Trade Commission’s (FTC) 3-2 vote to restore enforcement of the Robinson-Patman Act (RPA), an antitrust law that the independent grocery sector maintains will level the playing field for small-and-midsize businesses. The RPA prohibits price discrimination when competing buyers buy items in similar quantities or volumes.
According to the National Grocers Association (NGA), the national trade organization representing the independent sector of the food distribution industry, enforcement of the law “is a significant step toward ensuring that all retailers and wholesalers have equal access to discounts, enhancing retail price competition and ultimately expanding opportunities for all American consumers to enjoy lower prices, no matter where they shop.” The Washington, D.C.-based group has long pushed for RPA enforcement, arguing that it will help reduce food costs for U.S. consumers by extending discounts to more retailers, thereby strengthening competition between national chains, which the NGA calls “power buyers” in this context, and independent grocery stores.
“After years of steadfast advocacy efforts by our members and partners, we applaud this historic vote by the Federal Trade Commission to enforce the Robinson-Patman Act for the first time in decades,” noted NGA President and CEO Greg Ferrara. “Although not a unanimous decision, commissioners from both parties signaled they are serious about enforcing this crucial law, particularly in cases of buyer power abuses. This sends an unambiguous message to power buyers that they aren’t above the law.”
Although the FTC’s enforcement action pertains only to the alcohol marketplace, the law’s revival signals to the wider retail industry that antitrust laws created to protect competition and consumers should be abided by, according to the association, which has long held that large national grocery chains’ “unchecked buyer power exacerbates food price inflation, contributes to acute product shortages, and restricts access to fresh food for countless American communities that once featured and depended upon bustling Main Street businesses.”
“Grocery consolidation has made it extremely challenging for independent, family-run supermarkets to compete, as national chains have been allowed to illegally demand special pricing and treatment from suppliers for decades,” said NGA Chief Government Relations Officer and Counsel Chris Jones. “By enforcing Robinson-Patman, the FTC is simply upholding good law, honoring Congress’ intent to level the playing field between local Main Street businesses and powerful Wall Street interests.”
Earlier this week, the independent grocery community used the occasion of the termination of the proposed merger of Kroger and Albertsons to urge federal legislators and FTC commissioners “to enforce and strengthen antitrust protections to ensure a fair marketplace for independent grocers and their customers.”
