Senate Judiciary Committee Chairman Chuck Grassley and Senator Mike Rounds have called on the Department of Justice (DOJ) and the Federal Trade Commission (FTC) to strengthen enforcement of the Robinson-Patman Act. The senators say this action is needed to protect small and medium-sized businesses from economic discrimination, especially in grocery and agriculture sectors.
In a letter addressed to both agencies, the lawmakers stated, “Small and medium-sized businesses serve as the foundation for local communities from rural America to the inner city and have become the most effective source of new job creation … We have heard concerns that it is increasingly difficult for ordinary Americans to access essential goods and services traditionally provided by local grocers and pharmacies, due to discriminatory behavior by firms or intermediaries with market power.”
The letter continued, “We urge both the Commission and the DOJ to make enforcement against economic discrimination targeting small and medium-sized businesses a top priority. In particular, we urge the leaders of both agencies to utilize all of the tools at your disposal, including enforcement of the Robinson-Patman Act, to investigate, prevent and halt economic discrimination targeting small and medium-sized businesses, so a business of any size has a fair shot to achieve success.”
This appeal has received backing from organizations such as the National Grocers Association. Greg Ferrara, President and CEO of the association, commented: “Independent grocers feel the impact of discriminatory pricing every day, from higher costs to unfavorable package sizing and limited product access that make it harder to compete and harder for American families to find affordable options. We are incredibly thankful for Chairman Grassley’s steadfast leadership in elevating this issue and urging renewed enforcement of the Robinson-Patman Act, which is essential to restoring fairness in the grocery marketplace, protecting farmers and ranchers from unfair practices, and ensuring competition is based on service and efficiency rather than size and leverage.”
Garrett S. Piklapp, President of Fareway Stores Inc., also expressed support: “The Robinson-Patman Act exists to keep competition fair and strong, and it is time we enforce it again. When big national chains use their size to secure exclusivity of items and special pricing, independent grocers are put at a disadvantage. We should have access to the same products, and if I buy the same product in the same quantities, I should get the same price. Enforcing this law means real and fair competition, and that is good for local businesses, local shoppers, and local communities. We thank Senator Grassley for standing up for fairness in the marketplace.”
Other signatories include Senators Joni Ernst (R-Iowa), Thom Tillis (R-N.C.), Roger Marshall (R-Kan.), and Tim Sheehy (R-Mont.).
The Robinson-Patman Act was enacted in 1936 as an antitrust measure aimed at preventing price discrimination by large companies against smaller competitors. However, its enforcement has been largely dormant under recent administrations.
