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Two Democratic lawmakers are calling on the Biden administration to investigate major grocery chains, including Albertsons, for potential predatory pricing practices that may violate federal laws, as reported by NBC News.
Albertsons, North America’s second-largest grocery chain after Kroger, recently settled a case in California, agreeing to pay nearly $4 million over allegations of false advertising and customer overcharging.
Sen. Elizabeth Warren, D-Mass., and Rep. Adam Schiff, D-Calif., addressed their concerns in a letter to Federal Trade Commission Chair Lina Khan and Department of Agriculture Secretary Tom Vilsack. They wrote, “To ensure that no Albertsons stores are overcharging customers for essential groceries, we urge the FTC and U.S. Department of Agriculture to investigate whether any other Albertsons stores or other major grocery chains have committed similar wrongdoing and, if necessary, hold the responsible parties accountable.”
American people call for investigation into government prices!
Democrats call for investigation into grocery prices https://t.co/gTDzesLSSM
— Bo Snerdley (@BoSnerdley) November 4, 2024
The lawmakers expressed concern about large grocery companies using their market dominance to inflate prices on essential goods, taking advantage of consumers. They cited examples such as Stop & Shop charging higher prices in a predominantly minority, working-class urban area in Boston compared to a suburban location, and Kroger’s adoption of digital price tags potentially enabling price surges.
LAWFARE: Biden has enlisted 31 Democrat Attorney Generals to investigate and sue grocery store to get them to lower their prices. The irony is that litigation will increase their costs and force them to increase prices even more. Quit printing money and giving it to Ukraine. pic.twitter.com/PRPWQC7uXX
— @amuse (@amuse) July 3, 2024
Warren and Schiff also mentioned the proposed $24.6 billion merger between Kroger and Albertsons, suggesting it could further increase grocery prices and negatively impact workers and consumers. They commended the FTC’s recent action to block this merger.
The letter emphasized the lawmakers’ gratitude for the FTC’s intervention in halting the Kroger-Albertsons merger, which was valued at nearly $25 billion.
