In written comments to the FTC, National Grocers Association describes how economic discrimination in the grocery supply chain hurts independent grocers and customers
Washington D.C. – Today, the National Grocers Association (NGA) submitted comments to the Federal Trade Commission (FTC) on how predatory action by dominant retailers in the grocery marketplace leads to unfair contract terms for independent grocers. This unchecked anticompetitive behavior leaves independent store owners and their customers with fewer options and paying more for products.
In July, NGA Senior Vice President of Government Affairs and Counsel, Christopher Jones, testified at an open FTC hearing about the effects of economic discrimination on the grocery marketplace.
“The result of this unchecked buyer power is a system that benefits a select few at the expense of everyone else, including consumers, workers and independent retailers and suppliers: consumers have a narrowing range of choice to shop for the goods and services they need; entrepreneurs and independent businesses struggle to start and sustain businesses; and producers such as farmers and ranchers are forced to accept unfavorable economic terms, conditions and prices imposed by the largest members of a consolidated supply chain,” NGA writes.
The NGA suggests the FTC investigate whether power buyers like Walmart and Amazon are pressuring suppliers to give them favorable contract terms and in turn, charging higher prices and offering fewer products and product sizes to independently owned retailers.
Read the full comments here.
NGA is the national trade association representing the retail and wholesale grocers that comprise the independent sector of the food distribution industry. An independent community grocer is a privately owned or controlled food retail company operating a variety of formats. The independent grocery sector is accountable for more than 1 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, state grocers associations, as well as manufacturers and service suppliers. For more information about NGA, visit www.nationalgrocers.org.