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Is grocery price gouging still a hot button issue?
Colorado has just proposed new legislation, while bills at the federal level and Connecticut languish
3 Min Read
A bill introduced in Colorado’s State House of Representatives on Jan. 8, is another in a line of several such grocery price gouging bills currently pending.Getty Images
Grocery price gouging (whether real or perceived) was a hot topic during the most recent presidential election and has spurred proposed legislation, both federally and at the state levels, and most recently, earlier this month, in Colorado.
Biggest news for grocery?
A bill introduced in Colorado’s State House of Representatives on Jan. 8, is another in a line of several such grocery price gouging bills currently pending, with perhaps the most notable being the federal legislation introduced by U.S. Sen. Elizabeth Warren in February 2024. (Warren also made these memorable accusations against Boston Stop & Shops not long after).
The grocery industry largely takes the stance that true price gouging is an infrequent occurrence that’s being blown out of proportion. The National Grocers Association (NGA) has argued that calling for a ban on price gouging “is a solution in search of a problem.” Instead, the independent grocer’s organization says the federal government should focus on price discrimination, which could be addressed through stricter enforcement of the Robinson-Patman Act. But others maintain the practice is real—and a real problem. According to former U.S. Sen. Bob Casey of Pennsylvania, from 2020 to 2022, corporate profits rose by 75%—five times as fast as the rate of inflation.
So where do things stand with grocery price gouging legislation?
Despite the increased focus on price gouging, little progress has actually been made in terms of advancing legislation. In April, Connecticut Attorney General William Tong launched an inquiry into food and grocery prices. Both large and small grocers were included in the inquiry. Not long after, the Connecticut state Senate introduced a bill to give the state’s attorney general additional powers to combat price gouging, which is a top priority for Connecticut’s state legislature in 2025, alongside a bill to prevent shrinkflation.
In August, the Federal Trade Commission and Department of Justice announced they were launching an inquiry into high grocery prices. However, that push would have been made by Federal Trade Commission Chair Lina Khan and it remains to be seen as to whether Khan will keep her post in light of the incoming Trump administration.
What about dynamic pricing?
“Surge pricing” is another way grocers can manipulate price (and another technological advance that’s keeping members of Congress up at night). According to this New York Times piece, big retailers like Kroger and Walmart use digital tags to engage in dynamic pricing (though both retailers deny that). It’s just another technological advance that’s going to have to get sorted out. Last year, Walmart announced that it would completely change over to digital tags over the next two years.
More detail
Colorado House Rep. Yara Zokaie (D) introduced the recent state bill. Zokaie, a mother of three, told one local Colorado publication that for her, the issue is personal: “It is hard to get by. It’s an issue that’s close to me personally.”
If the cost of an item remains steady for 90 days before increasing by 10% or more above its average price, it will be considered price gouging, according to the proposed Colorado measure
Legislation around price gouging already exists in 37 states
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