Grassley, Rounds, Colleagues Push DOJ, FTC to Renew Robinson-Patman Act Enforcement, Protect Small and Medium-Sized Businesses From Economic Discrimination

Grassley, Rounds, Colleagues Push DOJ, FTC to Renew Robinson-Patman Act Enforcement, Protect Small and Medium-Sized Businesses From Economic Discrimination

WASHINGTON - Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa) and Sen. Mike Rounds (R-S.D.) today urged the Department of Justice (DOJ) and the U.S. Federal Trade Commission (FTC) to renew Robinson-Patman Act enforcement and prevent economic discrimination against small and medium-sized businesses, particularly in the grocery and agriculture industries.

"Small and medium-sized businesses serve as the foundation for local communities from rural America to the inner city and have become the most effective source of new job creation … We have heard concerns that it is increasingly difficult for ordinary Americans to access essential goods and services traditionally provided by local grocers and pharmacies, due to discriminatory behavior by firms or intermediaries with market power," the lawmakers wrote.

"We urge both the Commission and the DOJ to make enforcement against economic discrimination targeting small and medium-sized businesses a top priority. In particular, we urge the leaders of both agencies to utilize all of the tools at your disposal, including enforcement of the Robinson-Patman Act, to investigate, prevent and halt economic discrimination targeting small and medium-sized businesses, so a business of any size has a fair shot to achieve success," the lawmakers continued.

Grassley and Rounds' letter has garnered support from the National Grocers Association and local Iowa grocers.

"Independent grocers feel the impact of discriminatory pricing every day, from higher costs to unfavorable package sizing and limited product access that make it harder to compete and harder for American families to find affordable options," said Greg Ferrara, President and CEO of the National Grocers Association. "We are incredibly thankful for Chairman Grassley's steadfast leadership in elevating this issue and urging renewed enforcement of the Robinson-Patman Act, which is essential to restoring fairness in the grocery marketplace, protecting farmers and ranchers from unfair practices, and ensuring competition is based on service and efficiency rather than size and leverage."

"The Robinson-Patman Act exists to keep competition fair and strong, and it is time we enforce it again. When big national chains use their size to secure exclusivity of items and special pricing, independent grocers are put at a disadvantage. We should have access to the same products, and if I buy the same product in the same quantities, I should get the same price. Enforcing this law means real and fair competition, and that is good for local businesses, local shoppers, and local communities. We thank Senator Grassley for standing up for fairness in the marketplace," said Garrett S. Piklapp, President of Fareway Stores, Inc.

Along with Grassley and Rounds, the letter was signed by Sens. Joni Ernst (R-Iowa), Thom Tillis (R-N.C.), Roger Marshall (R-Kan.) and Tim Sheehy (R-Mont.).

Read the full letter HERE.

Background:

The Robinson-Patman Act is a powerful antitrust tool that prohibits price discrimination and other unfair trading practices to promote competition and protect consumers. Despite being signed into law in 1936, previous administrations have failed to enforce the Robinson-Patman Act.

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