Enforce the Robinson-Patman Act
CLEANUP NEEDED IN THE GROCERY INDUSTRY
It’s Time to End the Anti-Competitive Tactics of Giant National Chains.
Congress Must Support Antitrust Regulators and Strengthen Existing Laws
For decades, an existing antitrust law that prohibits price discrimination, the Robinson-Patman Act (RPA), had been significantly weakened by the federal judiciary and became exceedingly difficult to enforce. With the FTC’s revived RPA enforcement, NGA is calling on the FTC to use this tool to address grocery discrimination and for Congress to strengthen this critical law to reflect the modern retail economy and to conform with the modern approach to antitrust law enforcement.
THE CASE FOR A COMPETITIVE GROCERY MARKETPLACE
WHAT'S THE PROBLEM?
INDEPENDENT GROCERS NO LONGER COMPETE IN A FAIR MARKETPLACE. Giant national chains and e-commerce behemoths wield their influence to set terms of trade in the grocery marketplace. Dominant firms therefore get lower prices, preferable terms, exclusive offerings, and receive priority access to high-demand products. Independent grocers find themselves unable to compete on a level playing field.
With the revived enforcement of RPA, the FTC has exercised their responsibility to enforce the existing law that will help restore a competitive grocery marketplace. Now, it’s time for the FTC to bring grocery discrimination cases and for Congress to act and strengthen RPA to reflect the current challenges faced by independent grocers across the country.
WHY SHOULD I CARE?
COMMUNITIES THAT RELY ON INDEPENDENT GROCERS GET LEFT BEHIND. Communities that rely on independent grocers, which tend to be inner-city and rural communities, pay higher prices, have fewer choices, and can’t access key products in high-demand scenarios like the COVID-19 pandemic.
Independent supermarkets who traditionally service low-income areas are increasingly unable to stay afloat. America’s food desert problem is directly attributable to the lack of a competitive grocery marketplace. Simply put, Americans in rural areas and inner cities bear the brunt of price discrimination.
WHY WAS THIS HAPPENING?
ANTITRUST ENFORCEMENT IS BROKEN. Prior to the FTC’s enforcement action in December 2024, existing antitrust laws that prohibit exclusionary conduct and price discrimination had not been enforced by regulators in over four decades.
ISN'T BIGGER BETTER FOR CONSUMERS?
NO, INDEPENDENT GROCERS ARE HIGHLY EFFICIENT AND FIERCE COMPETITORS. Most independent retailers are serviced by large vertically integrated wholesalers who buy products in large quantities in the most efficient way possible from food manufacturers and suppliers.
WHAT DOES SUCCESS LOOK LIKE?
With a level playing field, stores can stay open and customers can choose where to buy their groceries. Families living in rural areas and urban centers can have reliable access to staples they need in good times and bad.
LEARN MORE | ISSUE SHEET
The National Grocers Association Five Principles for Robinson-Patman Reform
- Enhance Enforceability
Robinson-Patman should be modified to enhance the ability of enforcers to act against those who violate the law. - Promote Clarity
Compliance with the law should be clear to market participants in a way that preserves efficient behavior and constrains abuses of market power. - Address Discriminatory Loopholes
Exclusionary behavior that discriminates against entire retail channels like grocery should be prohibited (e.g., club and dollar store packaging). - Prevent Food Supply Chain Coercion
Legislation should deter large retail buyers from leveraging their “buyer power” to coercively squeeze food suppliers in a way that undercuts competitors and limits options for agriculture producers and food manufacturers. - Broaden View of Consumer Harm
Antitrust policy should enhance price competition amongst retail competitors while taking into consideration other consumer priorities, including convenience (i.e., food deserts), quality, product diversity, and customer satisfaction.
RPA IN THE NEWS
