Yahoo News Democrats call for investigation into grocery prices
Sen. Elizabeth Warren (D-Mass.) and Rep. Adam Schiff (D-Calif.) are calling on administration officials to investigate Albertsons and other major grocery chains for “predatory practices” they say may have violated federal laws.
Warren and Schiff wrote a letter to Federal Trade Commission Chair Lina Khan and Department of Agriculture Secretary Tom Vilsack asking them to investigate whether the grocers are overcharging customers.
The lawmakers noted that last month, California district attorneys reached a nearly $4 million settlement with Albertsons and its subsidiaries, Safeway and Vons, after it was found they “unlawfully charged customers prices higher than their lowest advertised or posted price” and overcharged people by placing inaccurate weights on labels for products.
For example, if a product was sold based on an item’s net weight, the grocer would overcharge customers by including the weight of the packaging in the cost, the Democrats said in a press release.
“Albertsons is one of the largest food retailers in the United States, boasting over 2,200 stores across the country. This settlement covers the 589 Albertsons stores in California, but all U.S. customers should be protected from predatory pricing,” the lawmakers wrote in their letter.
Warren and Schiff are urging Khan and Vilsack to investigate whether other Albertsons stores or other grocery chains across the country have participated in “similar wrongdoing” and hold the parties responsible.
Warren is one of the leading lawmakers tackling price gouging and inflated prices at grocery stores for Americans.
The lawmakers noted that Albertsons’s proposed $24.6 billion merger with Kroger threatens to drive up prices and “harm grocery store workers and consumers.”
In an emailed statement, a spokesperson for Albertsons Companies said the organization is committed to customers paying the “lowest advertised price on a product.”
“We closely follow all local pricing rules and regulations in the various communities where we operate, and we work quickly to correct any price discrepancies,” the spokesperson said.
The spokesperson’s statement said the lawsuit filed in California stemmed from administrative errors at a local store level and the company has since made changes to its processes to reduce the risk of a similar error happening in the future.
The Federal Trade Commission confirmed it had received the letter from the Democrats, but had no further comment.
The Hill has reached out to the Department of Agriculture for comment.
— Updated at 3:53 p.m.
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