Senators want Albertsons investigated for possible price gouging

Senator Elizabeth Warren and Congressman Adam Schiff have called on the FTC and the Department of Agriculture to investigate Albertsons and other major supermarket chains for possible unfair pricing.

This follows a recent $4 million settlement in California, where Albertsons was accused of overcharging customers by raising prices above advertised amounts and including package weight in the product cost.

Warren and Schiff are concerned that these pricing practices are hurting all U.S. customers, especially in low-income areas. They are also concerned that the proposed merger between Kroger and Albertsons could further increase grocery prices.

Specifically, the grocers “unlawfully charged customers prices greater than their lowest advertised or posted price” and overcharged customers by “placing inaccurate weights on the labels of their products.”

For example, while their products would be sold based on the net weight of an item, they would be unfairly overcharging customers by including the weight of the packaging in the cost, the two lawmakers said.

Agreed to a $3.9 million fine

The company agreed to pay $3.9 million to resolve a complaint that it defrauded customers at hundreds of its Vons, Safeway and Albertsons stores in California.

“Albertsons is one of the largest food retailers in the United States, with more than 2,200 stores nationwide. This settlement covers the 589 Albertsons stores in California, but all U.S. customers must be protected from predatory pricing,” they wrote.

“To ensure that no Albertsons store overcharges customers for essential groceries, we urge the FTC and the U.S. Department of Agriculture to investigate whether other Albertsons stores or other major supermarket chains have committed similar misdeeds committed and, if necessary, hold the responsible parties accountable. ”

The lawmakers’ request comes as major supermarkets have doubled down on their significant market power to raise prices on essential goods and take advantage of customers, Warren and Schiff said.

For example, Stop & Shop charged higher prices at a largely minority, working-class, urban location in Boston, Massachusetts than at a suburban retail location, placing a significant burden on already struggling consumers.

Grocery giant Kroger Company has introduced digital price tags in its stores, allowing the company to increase 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 hurt grocery store workers and consumers.

An election issue

Food prices were a major issue in the recent presidential elections. Both candidates addressed the impact of rising food costs on American households.

Vice President Kamala Harris highlighted high food and housing prices, proposed a federal ban on grocery price increases and plans to build 3 million new homes to ease costs.

President-elect Donald Trump criticized the Biden administration for inflation and highlighted the higher costs of everyday items such as cereal, bacon and eggs.

Voters’ concerns reflected this campaign focus. A poll found that more than half of American voters see lowering the cost of living as a top priority for the next president.

Despite a slowdown in food inflation, food prices remained higher than pre-pandemic levels, keeping the issue prominent in political discourse.