Lawmakers led by Senator Elizabeth Warren and Congressman Adam Schiff have urged the US Federal Trade Commission (FTC) and the Department of Agriculture (USDA) to probe Albertsons and other grocery chains for predatory pricing.
In a letter to the FTC chair Lina Khan and USDA secretary Thomas Vilsack, the lawmakers highlighted instances of false advertising and unfair competition which could have violated federal laws.
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Their push follows a settlement in which Albertsons agreed to pay almost $4m to resolve claims of overcharging customers in California.
In October 2024, California district attorneys settled with Albertsons and its subsidiaries Safeway and Vons on charges of misleading consumers by charging more than advertised prices.
The grocers also allegedly overcharged by inaccurately labelling product weights.
The lawmakers wrote: “Albertsons is one of the largest food retailers in the US, boasting over 2,200 stores across the country. This settlement covers the 589 Albertsons stores in California, but all US customers should be protected from predatory pricing.
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By GlobalData“To ensure that no Albertsons stores are overcharging customers for essential groceries, we urge the FTC and US Department of Agriculture to investigate whether any other Albertsons stores or other major grocery chains have committed similar wrongdoing and, if necessary, hold the responsible parties accountable.”
Their letter came in response to the price hike on essential goods by major grocery companies.
The lawmakers cite instances in which Stop & Shop charged higher prices in urban areas compared to suburban ones, and Kroger‘s adoption of digital price tags which could enable price surges.
They emphasised the need for protection against such practices that burden consumers, especially amid a proposed $24.6bn merger between Kroger and Albertsons that could further inflate prices.
In August 2024, Kroger initiated legal action against the FTC, claiming that the agency’s internal judicial process challenging Kroger’s proposed merger with Albertsons is unconstitutional.
