Schiff, Warren, Lawmakers Call for Probe of Albertsons and Other Grocery Chains for False Advertising
Washington, D.C.— Today, Representative Adam Schiff (D-Calif.) and Senator Elizabeth Warren (D-Mass.) led a group of lawmakers in calling on the Federal Trade Commission (FTC) and the Department of Agriculture to investigate grocery chain Albertsons and other major retailers for potential false advertising and predatory pricing practices.
In a letter to FTC Chair Lina Khan and Agriculture Secretary Thomas Vilsack, the lawmakers highlighted recent allegations against Albertsons, Safeway, and Vons, which resulted in a $4 million settlement with California District Attorneys. The settlement resolved claims that these grocery chains had engaged in false advertising and unfair competition, including charging customers more than the lowest advertised price and mislabeling product weights by including packaging in the cost.
“Albertsons is one of the largest food retailers in the United States, boasting over 2,200 stores across the country. This settlement covers the 589 Albertsons stores in California, but all U.S. customers should be protected from predatory pricing,” wrote the lawmakers. “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.”
The lawmakers’ request comes as large grocery companies have doubled down on using their significant market power to hike prices for essential goods and take advantage of customers.
For example, Stop & Shop charged higher prices at a largely minority, working-class, urban location in Boston, Massachusetts than it did at a suburban store location, placing a significant burden on already-struggling consumers. Grocery giant Kroger Company (Kroger) has adopted digital price tags in its stores, which may allow the company to surge grocery prices and exploit consumers. And the proposed $24.6 billion merger between Kroger and Albertsons is poised to further drive up grocery prices and harm grocery store workers and consumers.
Read the full letter here.