Two Democratic lawmakers are pushing for an investigation into grocery stores they say are overcharging customers.
Sen. Elizabeth Warren, D-Mass., and Rep. Adam Schiff, D-Calif., sent a letter seen by News on Sunday to the Federal Trade Commission and the Department of Agriculture, calling on the agencies to investigate whether “major grocery chains may be making false and misleading representations about food sold by weight, causing customers to pay more for groceries than they expected.”
Both lawmakers come from overwhelmingly Democratic states and are on the ballot this year. Warren is the favorite to win reelection, and Schiff, currently a senior member of the House of Representatives, is ahead in his bid to become California’s junior senator.
Their late-election move is unlikely to trigger government action anytime soon, especially if Republicans retake the White House. It follows numerous efforts by the Biden-Harris administration to pressure grocers to lower their prices, and plans by Vice President Kamala Harris to crack down on excessive food price increases if elected. She and former President Donald Trump have both tried to convince voters that they are focused on addressing the cost of living in an election where affordability is a priority.
The letter cites a lawsuit in which California prosecutors alleged that Albertsons and its subsidiaries Safeway and Vons “unlawfully charged customers higher prices than their lowest advertised or published price” and sold mislabeled items by weight, including produce, meat and baked goods.
The lawsuit was settled in early October for $4 million, with Albertsons denying wrongdoing but Warren and Schiff saying they believe the possibility of “similar predatory pricing practices across the country” warrants further investigation.
“Too often, large grocery companies use their considerable market power to raise prices on essential goods and take advantage of customers,” the letter said. Four other senators and 10 additional representatives — all Democrats, plus Sen. Bernie Sanders, I-Vt. — also signed it.
Albertsons, the FTC and the USDA did not immediately respond to requests for comment.
Warren has previously accused grocery chains of exploiting shoppers, saying during a Senate hearing in May that “groceries have gone up because of old-fashioned corporate profiteering,” which she attributed to a “small number of companies that control every level of the food chain.”
In Sunday’s letter, she and Schiff said Albertsons may have violated federal law, citing “unfair or deceptive acts or practices” prohibited by the Federal Trade Commission Act. They said the company may also have failed to disclose the correct quantities in certain products, as required by the Fair Packaging and Labeling Act.
Following the California settlement, Albertsons said it would uphold its price accuracy guarantee and would post signs and provide additional training to “better ensure real-time accuracy in stores.” The pricing dispute isn’t the first time Albertsons has had problems this year. In February, the FTC sued grocery giant Kroger to block its acquisition of Albertsons, which the agency said would “eliminate competition and raise grocery prices for millions of Americans.”
The Biden-Harris administration has argued that the proposed merger would reduce competition, drive up costs for consumers and depress wages for grocery workers. The companies counter that a merger would have the opposite effect, allowing them to better compete with rivals like Walmart, Amazon and Costco. Kroger pledged this summer to cut prices by $1 billion after the deal closes, if it’s allowed to go through.
Food prices have been one of the biggest pain points for households during the latest wave of inflation. Grocery prices rose 20% between January 2021 and December 2022, causing some consumers to buy less on common items like red meat and eggs. But inflation has now returned to almost normal, with grocery prices rising less than 2% year-over-year since November 2023.
Yet many people still feel like they’re living in an era of inflation, a recent Bank of America survey found. While average hourly wage growth has outpaced inflation, many people are living paycheck to paycheck, spending a large portion of their income on necessities.
Concerns about potential overpricing in grocery stores, including at Kroger and Walmart, have also been fueled by the rise of electronic price tags on store shelves and the “dynamic pricing” they could enable. The companies say the tags allow employees to change prices up to every 10 seconds, allowing them to streamline operations and replenish inventory more quickly.
But Warren and Schiff, whose letter also addressed the technology at Kroger, said it “could enable the company to raise grocery prices and exploit consumers,” a concern Warren also raised in a letter to the chain’s CEO in August.
Kroger has denied that claim, saying electronic pricing would only be used to lower prices when possible.