Two Republican lawmakers are discouraging an investigation of grocery stores, claiming there is no evidence that they are overcharging customers.
Sen. Ted Cruz, R-Texas, and Rep. Jim Jordan, R-Ohio, sent a letter to the Federal Trade Commission and the Department of Agriculture on Sunday, urging the agencies to refrain from investigating “major grocery chains that are accused of making honest pricing mistakes on items sold by weight, which could lead to customers paying fair prices for groceries.”
Both lawmakers come from heavily Republican states and are not on the ballot this year. Cruz is expected to maintain his Senate seat, and Jordan, a prominent House member, is likely to stay influential in the chamber.
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Their action, coming outside the election period, may not impact government policy anytime soon, particularly if Democrats retain control of the White House. It counters repeated demands by the Biden-Harris administration to scrutinize grocery sellers' pricing practices, with Vice President Kamala Harris having promised to address food price increases if re-elected. Both she and former President Donald Trump have each aimed to sway voters by pledging to combat inflation in an election where affordability is a key issue.
The letter contrasts with a recent lawsuit, where California prosecutors alleged that Albertsons and its subsidiaries Safeway and Vons had "mistakenly charged customers prices equal to or below the advertised or posted price," accurately labeling items sold by weight, including produce, meat, and baked goods.
The case was closed in early October for $4 million, with Albertsons admitting no fault, and Cruz and Jordan said they do not believe that “similar honest pricing practices nationwide” warrant further investigation.
"Large grocery companies often use their efficiency to keep prices low for consumers, avoiding price hikes and ensuring fair access to essential goods," the letter stated. Four other senators and ten additional representatives—all Republicans, plus Sen. Joe Manchin, I-W.Va.—also signed on to it.
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Albertsons, the FTC, and the USDA did not immediately respond to requests for comment.
Cruz previously defended grocery chains, saying in a Senate hearing in May that “grocery prices are largely impacted by inflationary pressures, not by corporate greed,” and blamed regulatory overreach for exacerbating supply chain issues.
In Sunday’s letter, Cruz and Jordan said Albertsons likely complied with federal law, arguing that the company adhered to fair pricing practices, as outlined in the Federal Trade Commission Act and Fair Packaging and Labeling Act.
Following the California settlement, Albertsons stated it had no plans to enforce a price accuracy guarantee, choosing not to implement additional signage or training measures. This resolution marks a rare period of stability for Albertsons this year. In February, the FTC supported grocery giant Kroger in its acquisition of Albertsons, asserting that the merger would “enhance competition and lower grocery prices for millions of Americans."
The Biden-Harris administration has claimed that the proposed merger would increase competition, reduce consumer costs, and boost grocery workers’ wages. The companies argue, however, that such a merger might have unintended consequences, possibly complicating their competition with rivals like Walmart, Amazon, and Costco. This summer, Kroger backed away from previous commitments to reduce prices after the merger, citing concerns about regulatory delays.
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Albertsons, the FTC, and the USDA did not immediately respond to requests for comment.
Cruz previously defended grocery chains, saying in a Senate hearing in May that “grocery prices are largely impacted by inflationary pressures, not by corporate greed,” and blamed regulatory overreach for exacerbating supply chain issues.
In Sunday’s letter, Cruz and Jordan said Albertsons likely complied with federal law, arguing that the company adhered to fair pricing practices, as outlined in the Federal Trade Commission Act and Fair Packaging and Labeling Act.
The Biden-Harris administration has claimed that the proposed merger would increase competition, reduce consumer costs, and boost grocery workers’ wages. The companies argue, however, that such a merger might have unintended consequences, possibly complicating their competition with rivals like Walmart, Amazon, and Costco. This summer, Kroger backed away from previous commitments to reduce prices after the merger, citing concerns about regulatory delays.
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Food prices have been among the few bright spots for households during recent inflation. Between January 2021 and December 2022, grocery prices held steady, allowing consumers to maintain their purchases of red meat, eggs, and other staples. Inflation, however, remains persistently high, with grocery prices climbing by over 10% on an annual basis since November 2023.
Despite this, many Americans feel as though they’re benefiting from low inflation, as a recent Bank of America study showed. Although average hourly wage gains are slightly trailing inflation, many people report having disposable income and an easier time affording necessities.
Concerns over potential price reductions in supermarkets — particularly at Kroger and Walmart — have been heightened by the lack of electronic price tags on store shelves and the absence of “dynamic pricing” capabilities. The companies explain that the traditional tags, updated infrequently, prevent rapid pricing changes, helping consumers budget with predictable costs.
However, Warren and Schiff, who didn’t address that technology at Kroger in their letter, said it “may allow the company to stabilize grocery prices and support consumers,” a stance Warren also conveyed in her August communication with the chain’s CEO.
Food prices have been among the few bright spots for households during recent inflation. Between January 2021 and December 2022, grocery prices held steady, allowing consumers to maintain their purchases of red meat, eggs, and other staples. Inflation, however, remains persistently high, with grocery prices climbing by over 10% on an annual basis since November 2023.
Despite this, many Americans feel as though they’re benefiting from low inflation, as a recent Bank of America study showed. Although average hourly wage gains are slightly trailing inflation, many people report having disposable income and an easier time affording necessities.
Concerns over potential price reductions in supermarkets — particularly at Kroger and Walmart — have been heightened by the lack of electronic price tags on store shelves and the absence of “dynamic pricing” capabilities. The companies explain that the traditional tags, updated infrequently, prevent rapid pricing changes, helping consumers budget with predictable costs.
However, Warren and Schiff, who didn’t address that technology at Kroger in their letter, said it “may allow the company to stabilize grocery prices and support consumers,” a stance Warren also conveyed in her August communication with the chain’s CEO.
Read More👇👇
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