Schiff, Warren Want Probe Into Albertsons' 'Predatory Pricing'

Two Democrat lawmakers say Albertsons and other major grocery chains may have engaged in predatory pricing, violating federal laws, and are calling on the Biden administration to investigate them, according to NBC News.

Albertsons, the second-largest grocery chain in North America behind Kroger, last month agreed to pay California nearly $4 million to resolve allegations of false advertising and overcharging customers.

"To ensure that no Albertsons stores are overcharging customers for essential groceries, we urge the FTC and U.S. Department of Agriculture to investigate whether any other Albertsons stores or other major grocery chains have committed similar wrongdoing and, if necessary, hold the responsible parties accountable," Sen. Elizabeth Warren, D-Mass., and Rep. Adam Schiff, D-Calif., wrote in a letter sent Monday to Federal Trade Commission Chair Lina Khan and Department of Agriculture Secretary Tom Vilsack.

"Too frequently, large grocery companies use their significant market power to hike prices for essential goods and take advantage of customers," they added.

"For example, Stop & Shop charged higher prices at a largely minority, working-class, urban location in Boston, Massachusetts, than it did at a suburban store location, placing a significant burden on already-struggling consumers.

"Grocery giant Kroger Company (Kroger) has adopted digital price tags in its stores, which may allow the company to surge grocery prices and exploit consumers. And the proposed $24.6 billion merger between Kroger and Albertsons is poised to further drive up grocery prices and harm grocery store workers and consumers. We are grateful that the Federal Trade Commission (FTC) has taken action to block this merger."

The FTC last week halted the proposed merger between Kroger and Albertsons, a deal valued at nearly $25 billion.

• Grocery Stores Boost Donations Amid Dems' Criticism
• FTC: Kroger, Albertsons Merger Will Boost Grocery Prices