Harris Price Gouging Plan Faces Pushback From Grocers, 'Hurting From The Same Inflationary Pressure' As Customers

The food industry is rejecting Vice President Kamala Harris‘ proposal for a federal ban on price gouging by grocery stores.

The plan calls for increased scrutiny of potential mergers between large supermarkets and food producers, as well as a federal ban on price hikes.

"We understand why there is this sticker shock and why it's upsetting," Andy Harig, a vice president at FMI, a trade group representing food retailers and suppliers, told the Wall Street Journal. "But to automatically just say there's got to be something nefarious, I think to us that is oversimplified."

The National Grocers Association said Harris’ proposal does not take into account independent grocers are hurting from the same inflationary pressure that their customers are.

“Labor, rent, swipe fees, utilities; you name it, the price has increased,” the association said in a statement. “But what's really hurting our local, independent grocers, is the lack of fair competition with big box retailers, who leverage their influence in ways that your independent grocer down the street can't, leading to increased prices for everyone else.”

The association said it hopes the next and current White House administration will look closely at anti-competitive behaviors, including price discrimination, that are raising prices for independent grocers and their customers.

The group also said Washington should enforce the Robinson-Patman Act, an antitrust law enacted in 1936 to deter price gouging.

“If Washington is serious about helping lower prices for consumers, it can help in three important ways: lower skyrocketing swipe fees, rein in excessive and burdensome regulations, and enforce antitrust laws like the Robinson-Patman Act that enhance price competition amongst retailers, regardless of size or location,” the association said.

Price Action: Major food retailers saw gains and losses as of Tuesday’s later-morning trading.