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A group of Democratic lawmakers is calling on President Joe Biden to investigate price-fixing practices at grocery store chains.Sen. Elizabeth Warren, D-Mass., stressed in an interview Monday that big food companies want to “keep their huge profits” and are hiring legions of lobbyists to Prevent Congress from taking action. Warren said President Biden should use executive authority to take additional enforcement action against rising food prices without help from Congress.
Earlier this year, Warren and Rep. Mary Gay Scanlon, D-Pa., led a group of 14 lawmakers to send a letter to FTC Chairwoman Lina Khan asking the agency to reinstate Enforcement of the Robinson-Patman Act of 1936, which they called an important tool to promote fair competition in the food industry. In the letter, the lawmakers called on the FTC to investigate potential RPA violations and, if necessary, initiate proceedings under the RPA to protect consumers, small businesses, farmers and workers. The letter follows a report from the Federal Trade Commission indicating that consumers are feeling the negative impacts of supply chain disruptions, including skyrocketing grocery prices and shortages of essential products, in part due to excessive consolidation among food suppliers. Some Republicans have warned that the anti-fraud legislation could prolong shortages of certain goods and services.
Although food prices rose only slightly in the most recent CPI report, U.S. households will still feel the surge between 2020 and 2023. Companies such as Kraft Heinz (NASDAQ:KHC), General Mills (NYSE:GIS), PepsiCo (PEP), Mondelēz International (NASDAQ: MDLZ), Kellogg’s (K), JM Smucker (SJM), Lamb Weston (LW), Pilgrim’s Pride (PPC), BellRing Brands (BRBR) and Post Holdings (POST) have yet to see red-hot earnings reports, in part because of consumer suppliers’ resistance to pricing and the collective dominance of Kroger (KR), Albertsons (ACI), Target (TGT), Costco (COST), and Walmart (WMT) in setting supplier terms.
