NGA Lauds Bipartisan Call to Enforce Antitrust Regulations

The Robinson-Patman Act—a federal law passed in 1936 to prohibit price discrimination by suppliers against retailers—is seeing an historic refocus as a March 30 letter signed by 43 members of the U.S. House of Representatives calls on the Federal Trade Commission (FTC) to investigate and bring enforcement actions against discriminatory conduct that violates the antitrust laws.

"The antitrust laws were designed to protect against anticompetitive economic discrimination and excessive concentration," a bipartisan coalition of House members wrote. “For example, the Robinson-Patman Act reflects Congress’ determination that discriminatory treatment among competitors is pernicious and should be prohibited." The letter urges the FTC "to make enforcement against economic discrimination targeting small and medium-sized businesses a top priority."

The letter highlights concerns raised by the Main Street Competition Coalition, a group formed by the National Grocers Association (NGA), the National Community Pharmacists Association, the National Association of Convenience Stores, the Western Growers Association and the National Beer Wholesalers Association in 2021 to advocate for enforcement of antitrust regulations.

“Current enforcement efforts have failed to address these anticompetitive harms, and judges have inappropriately limited the scope of the law despite clear statutory language,” the letter states. “Despite Congress’ broad goals in 1936, the FTC has not brought a case under the Robinson-Patman Act in more than 20 years.”

Rep. Hakeem Jeffries (D-NY) called on the commission to act. "The FTC should use its authority to investigate and bring enforcement actions against discriminatory conduct that violates our nation's antitrust laws to address economic discrimination that hurt both small business owners and consumers," Jeffries said in a statement.

Rep. Louie Gohmert (R-TX), the Republican co-lead on the letter, stated: "The Robinson-Patman Act, the Sherman Act, The Clayton Act and Federal Trade Commission Act were all passed to protect small business and encourage competition. This is best for the consumer and for the free market, ensuring that shoppers receive the best prices, and that farmers and ranchers don’t suffer from high levels of concentration. To protect the pocketbooks of Americans and the ability for small businesses to flourish on a level playing field, the FTC must enforce the laws on the books and stop allowing big businesses to create monopolies and increase costs."

The National Grocers Association, in a March 31 statement, lauded the coalition's letter and asserted that smaller businesses in the grocery space and other areas are "increasingly subject to discriminatory terms and conditions because of concentration throughout supply chains."

Hoping to see new federal action taken, Chris Jones, NGA SVP of government relations and counsel, thanked representatives Jeffries, Gohmert and all 43 members of Congress who signed the letter. "A lack of enforcement of antitrust laws in the grocery marketplace has allowed dominant retailers to exert their immense economic power to secure favorable terms and tilt the competitive playing field against their independent grocer competitors," Jones stated, adding, "We hope this bipartisan display of support from Congress will lead to a course correction in how U.S. antitrust laws are enforced."

Patty Lovera, policy director of the Organic Farmers Association, said in a statement that when independent retailers serving local and regional markets go out of business "because of unfair practices used by mega-buyers," it's not only consumers who feel the effects. Local and independent grocers also serve as vital customers for small- and midsize regional farms, she noted. "Leveling the playing field for independent retailers will have upstream benefits for farmers who want to feed their communities," Lovera stated.