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NGA Tells FTC: Economic Discrimination Hurts Competition

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The National Grocers Association has submitted its public comments to the Federal Trade Commission on the state of competition in the grocery sector.

The NGA offered a first-hand account of how economic discrimination has harmed independent community grocers and consumers across the country. The comments were solicited by the FTC as it continues its study looking into supply chain disruptions in the food and grocery sector.  

“For decades, independent grocers have not had equal access to pricing, promotions and packaging deals that are provided to large firms. These practices will only continue after the pandemic is over unless antitrust enforcers like the Federal Trade Commission acts. Consequently, consumers will face reductions in diversity in the marketplace, and choices will be limited to what the few remaining mega-retailers find most profitable,” said Christopher Jones, SVP of government relations and counsel for the NGA.

The comments argue that while anticompetitive conduct by grocery industry “power buyers” is not new, these dominant firms have taken advantage of supply chain disruptions by leveraging their dominance to gain market share while forcing smaller competitors to bear the brunt of product shortages and inflation pressures.

To read NGA’s comment submission, click here.

NGA is the national trade association representing the retail and wholesale community grocers that comprise the independent sector of the food distribution industry. An independent retailer is a privately owned or controlled food retail company operating a variety of formats.

The independent grocery sector is accountable for about 1.2 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 located in every congressional district across the country, as well as state grocers’ associations, manufacturers and service suppliers.

For more information, visit nationalgrocers.org.

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