US targets surging grocery prices in latest probe

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https://www.reuters.com/markets/us/us-targets-surging-grocery-prices-latest-probe-2024-08-01/

US targets surging grocery prices in latest probe​

By Jody Godoy

August 1, 20247:45 PM EDTUpdated 7 days ago

Item 1 of 2 A woman shops for groceries at El Progreso Market in the Mount Pleasant neighborhood of Washington, D.C., U.S., August 19, 2022. REUTERS/Sarah Silbiger/File Photo

[1/2]A woman shops for groceries at El Progreso Market in the Mount Pleasant neighborhood of Washington, D.C., U.S., August 19, 2022. REUTERS/Sarah Silbiger/File Photo Purchase Licensing Rights
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Aug 1 (Reuters) - The U.S. Federal Trade Commission will probe why grocery prices remain high even as costs for retailers fall, Chair Lina Khan said on Thursday, a key theme for the Biden-Harris administration as it heads towards the presidential election.

Once the FTC votes to authorize the study, major grocery chains would be ordered to provide information on their costs and prices on common products. Khan made the announcement at a public meeting with Justice Department officials on pricing practices.

The biggest U.S. industry players include Walmart (WMT.N)
, opens new tab; club grocery chain Costco Wholesale Corp (COST.O), opens new tab; Amazon.com (AMZN.O), opens new tab, which operates Whole Foods; and big box retailer Target (TGT.N)
, opens new tab.

Food prices have risen 25% between 2019 and 2023, faster than other consumer goods and services, U.S. Department of Agriculture statistics showed. An FTC study showed food prices for U.S. consumers rose 11% between 2021 and 2022, while profits for food retailers went up more than 6%.

"We want to make sure that major businesses are not exploiting their power to inflate prices for American families at the grocery store," Khan said.

The FTC has played a major role in the Biden administration's efforts to cut costs for U.S. households, targeting high prices and junk fees on products and services ranging from airfare to credit cards.
Billionaire Democratic donors, some affiliated with businesses the FTC has sued, have urged Vice President Kamala Harris, the Democratic presidential nominee, to replace Khan if elected.

The agency last week launched an inquiry into services that could let companies set different prices based on the shopper's personal information.

The FTC earlier this year sued to block Kroger's (KR.N)
, opens new tab acquisition of smaller grocery store rival Albertsons, citing concerns the deal would hike prices for millions of Americans.

 

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[OneManGang]

Absolutely needed

 

[Hoshi_Toshi]

I just feel old as hell now when I look at prices of stuff I used to buy. Triple priced and then the package got smaller at the same time.

 

[ORDER_66]

Been telling them we getting gouged on prices for the longest!!!!

 

[VertigoKnight]

shyts disgusting. I'm in Canada and the prices here are just as wild.

It's a literal monopoly up here how the hell the government has allowed 2 companies to own so many supermarkets is crazy.

And there is definitely collusion going on.

 

[DetroitEWarren]

Been telling them we getting gouged on prices for the longest!!!!

Nah bytch, remember it's no vote for the party that is looking into the shyt. fukk outta here nikka.

bytch about an issue then bytch against the party addressing the issue brehs

 

[DonB90]

Americans will bytch and whine but check this out for a sec. .....




!!!!STOP BUYING shyt!!!!

You don't need cheez its. You don't need a new car if the one you have is still running. You don't need the new pair of kicks that dropped. Just stop. Even worse is these corporations realized they could inflate the price of goods and not only will the mouf breathing average American buy the shyt, they'll even buy MORE of the shyt.

Why would they ever lower prices? Would you?

Capitalism doesnt run on kindness.


Glad the govt is somewhat stepping in tho I doubt they'll do much

 

[ORDER_66]

Nah bytch, remember it's no vote for the party that is looking into the shyt. fukk outta here nikka.

bytch about an issue then bytch against the party addressing the issue brehs

nikka what are you talking about they had 4 fukking years and let this shyt go on for the longest you think I was the only one Talking about it???

 

[ORDER_66]

DBL*

 

[DetroitEWarren]

nikka what are you talking about they had 4 fukking years and let this shyt go on for the longest you think I was the only one Talking about it???

Yea, it's bullshyt. Them Biden people to begin with so he definitely wasn't finna do shyt about it. This is a federal probe if I'm not mistaken, and Garland probably ain't finna do shyt either.

Instead of bytching about everything, why not add input on who should be her Attorney General. Somebody who will continue to prove into the companies.

Your solution of "don't vote" ain't finna get shyt done. But I'm sure you couldn't name 2 people who would be considered for AG anyways so

 

[Unbothered]

There's not much they can do when it comes to certain inflation such as groceries, clothing, etc, and even before the pandemic and inflation rose, people would complain about prices being too high then.

What some don't understand is that just because one can't afford something doesn't mean somebody else can't; there are always going to be people who can't afford to buy certain foods, clothes, etc.

Unlike gas prices, manufacturers of necessities such as food, clothing, etc are always going to have a reason for why the prices of those items are higher. The government can't force the grocery stores to drop prices by 60-80% since the grocers have to make a profit back, the only thing the federal government could do is give special benefits/payments (aside from SNAP benefits) to help people purchase groceries.

 

[BK The Great]

I’m sure all these supermarkets were gouging prices. Hope they get maximum penalties if they’re caught.

 

[ORDER_66]

Yea, it's bullshyt. Them Biden people to begin with so he definitely wasn't finna do shyt about it. This is a federal probe if I'm not mistaken, and Garland probably ain't finna do shyt either.

Instead of bytching about everything, why not add input on who should be her Attorney General. Somebody who will continue to prove into the companies.

Your solution of "don't vote" ain't finna get shyt done. But I'm sure you couldn't name 2 people who would be considered for AG anyways so

NIKKA, THEY HAD 4 YEARS!!? this happened under their watch!!!What part of they let this happen do you not understand??Do you not see they only starting to address this now during election season???

 

[Vandelay]

Ill give y'all some gems from my time in supply chain. I'm surprised they let the Kroger-Albertsons merger go through.

I'm no longer in the food industry, but I'm still in CPG and I'm involved with the conversations with the commercial team when they decide to raise prices, and generally they try to price at what their competitors price regardless of profit. Profit is important, it allows you hire more, raise wages, improve the product, advertise more, give bonuses, etc...I'm not against it, but it's the excess profit when the cost of sales are half or in some cases a 5th of what it costs to make, ship and advertise that's disgusting.

There's only like 5 food companies and 5 grocery companies. The fewer the companies there are, they start form informal "pricing alliances" like Big Brother; like they don't meet and say let's sell it for this, but they have ways of telling how much competitors pay for cost of goods and cost of sales; and will hold those prices even as margins start to dip, until one starts to fumble, and then a larger one buys them out and then there's 4.

Trump would allow more of this.