Vice President Kamala Harris has promised to push through a nationwide ban on food price gouging if elected president, she announced during a campaign speech on Friday. The proposed ban, which she called “the first of its kind,” would introduce new penalties for companies that exploit crises to unfairly hike prices.
FMI and NGA respond to Harris’ proposal
Harris’ proposal has provoked strong reactions from important industry associations. The Food Industry Association (FMI) reacted critically to the allegations of price gouging in the food sector. Meanwhile, the National Grocers Association (NGA) called for stricter enforcement of the Robinson-Patman Act, an antitrust law designed to prevent price discrimination in retail.
According to Grocery Dive, Harris argued that a federal ban on grocery price gouging would increase competitiveness within the food industry. She emphasized her administration’s commitment to supporting smaller food companies that follow fair business practices and said such measures are essential to creating a level playing field.
“We all know that prices went up during the pandemic as supply chains shut down and collapsed, but our supply chains have since improved and prices are still too high… Many of the major food companies are reporting their highest profits in two decades, and while many grocery chains are passing on those savings, others still are not,” Harris said in her speech.
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Consumer concerns about easing inflation
Harris’ remarks come at a time when grocery inflation is showing signs of slowing. According to Grocery Dive, the U.S. Bureau of Labor Statistics reported that household grocery prices rose 1.1% year-over-year in July, while overall inflation rose 2.9%, the lowest annual rate since March 2021. Despite this slowdown, consumers remain concerned about persistently high grocery costs.
Harris, who previously served as California’s attorney general, drew on her experience in prosecuting companies for illegal price hikes. “So believe me, as president, I will go after the wrongdoers,” she assured, underscoring her determination to crack down on corporate practices that harm consumers.
Resistance from industry and alternative solutions
However, the NGA criticized Harris’ proposal, calling it a “solution in search of a problem.” In a statement, NGA President and CEO Greg Ferrara argued that the real problems lie elsewhere and suggested that instead of introducing new laws, the government should focus on enforcing existing laws such as the Robinson-Patman Act. The NGA also called for a reduction in swipe fees and a reduction in what it called “excessive and burdensome regulations.”
