Washington, D.C. – The FTC reinforced its commitment to promoting fair competition and strengthening Main Street America by addressing the illegal promotional practices implemented by dominant retail chains, or power buyers, to gain unfair advantages in the marketplace. By enforcing the Robinson-Patman Act (RPA), the National Grocers Association (NGA) commends the FTC’s commitment to fulfilling its responsibility to protect competition and ensure all consumers can get fair prices and more choices.
The RPA prohibits price discrimination and special promotional offers when competing businesses purchase goods in similar quantities and reach similar efficiencies. Leveraging their size, power buyers can coerce suppliers, insulate themselves from competition, drive rivals out of the market, and ultimately contribute to higher prices for consumers.
The FTC’s lawsuit focuses on the core of the problem, one dominant retailer abusing its market power to coerce suppliers into making unreasonable and costly concessions,” said Chris Jones, Chief Government Relations Officer & Counsel at the National Grocers Association. “Suppliers pay dearly for the privilege of doing business with these massive corporations, and the cost gets passed on to everyone else.”
One 2021 market study found that 69 percent of all US grocery sales are attributable to the top four largest grocery power buyers. NGA has long advocated for RPA enforcement, asserting that it will help lower the cost of food for Americans by extending discounts and special promotions to more retailers, bolstering competition between national chains and independent grocery stores.
The continued enforcement of this critical antitrust law is an important step toward ensuring that all retailers and wholesalers have equal access to similar pricing, discounts, and promotions, thereby enhancing competition and ultimately expanding opportunities for all American consumers to enjoy lower prices, no matter where they shop.
NGA is optimistic that the FTC, under the incoming Trump-Vance Administration, will continue its important work to ensure a fair market for independent grocers and hardworking American families alike, many of whom continue to struggle with rising food costs.
About NGA
NGA is the national trade association representing the retail and wholesale community grocers that comprise the independent sector of the food distribution industry. An independent retailer is a privately owned or controlled food retail company operating a variety of formats. The independent grocery sector is accountable for about 1.2 percent of the nation’s overall economy and is responsible for generating more than $250 billion in sales, 1.1 million jobs, $39 billion in wages and $36 billion in taxes. NGA members include retail and wholesale grocers located in every congressional district across the country, as well as state grocers’ associations, manufacturers and service suppliers. For more information about NGA, visit www.nationalgrocers.org.
