Senator Elizabeth WarrenD-Mass and Rep. Adam SchiffD-Calif., appeal to the Federal Trade Commission and the Ministry of Agriculture to investigate Albertson and other major grocery chains for “predatory pricing” practices that may have violated federal laws.

In a letter Sent to FTC Chair Lisa Khan and USDA Secretary Tom Vilsack, Warren and Schiff expressed concern that chains, including Albertsons, “may make false and misleading statements regarding “food sold by weight, which would cause customers to pay more than expected for their groceries.”

There is precedent for their concern. Last month, California prosecutors reached a $3,962,500 settlement with Albertsons Companies, Inc. – and its subsidiaries Safeway and Vons – to resolve allegations that the companies engaged in “false advertising and competition unfair”. Specifically, the civil complaint filed by the prosecution team alleged that grocers illegally charged customers higher prices than the lowest advertised or displayed price.

Beyond what prosecutors called “scanner violations,” grocers also had inaccurate weights on their product labels, which meant customers paid more for “produce, meats, baked goods and other items (which) contained less product in the package than expected.” displayed on the package label.

In a declaration Posted following the settlement announcement, Sonoma County District Attorney Carla Rodriguez said: “Trusting businesses to sell consumers products that are accurately weighted and priced, especially in today’s economy, is a priority for my office. My Environmental and Consumer Law Division works with the Sonoma County Commissioner of Agriculture/Department of Weights and Measures to ensure that businesses in our community are billing consumers correctly.

However, Warren and Schiff say in their letter that further investigation must take place.

“Albertsons is one of the largest grocery retailers in the United States, with more than 2,200 stores across the country. This settlement covers all 589 Albertsons stores in California, but all U.S. customers should be protected from predatory pricing,” the lawmakers wrote in their letter. “To ensure that no Albertsons store overcharges its customers for essential groceries, we urge the FTC and the U.S. Department of Agriculture (USDA) to investigate whether other Albertsons stores or other large Grocery chains have committed similar wrongdoing and, where necessary, are holding the responsible parties accountable.

By speaking with The HillThe FTC confirmed receiving the letter, but had no further comment, while an Albertsons Companies spokesperson said the company follows “all local pricing rules and regulations in the various communities where we operate, and we work quickly to correct any pricing discrepancies.” .”

According to the publication, the spokesperson’s statement also noted that “the lawsuit filed in California stemmed from administrative errors at a local store and the company has since made changes to its processes to reduce the risk that an error similar will happen again in the future.”

The push for further investigation comes as a proposed merger between Albertsons and Kroger — another major supermarket chain with subsidiaries like Mariano’s, King Soopers, Food 4 Less and Food Lion — remains in legal limbo complex. Several state and federal lawsuits seeking to block the merger have concluded, but rulings are still awaited.

In October, the FTC wrapped up a high-profile antitrust trial in Portland aimed at blocking the merger over concerns it would stifle competition, particularly in smaller markets, which could lead to higher prices for consumers. Meanwhile, states including Washington and Colorado have filed separate lawsuits, also related to concerns that the merger would be anticompetitive.

In response, Kroger and Albertsons executives argued that the merger would simply allow them to compete with non-union giants like Walmart And Amazonpromising benefits such as price reductions and operational efficiencies.

This push from Warren and Schiff also reflects how the cost of basic necessities, like groceries, has become a major political issue. In February, President Joe Biden denounced the concept of “contraction-flation” — reducing the quantity or quality of an item, while keeping the price static — before the Super Bowl, claiming “it’s a scam.” A few months later, in his annual State of the Union address, Biden returned to the subject.

“Too many companies are raising prices to increase profits, charging more and more for less and less,” he said, before nodding. Contraction and Inflation Prevention Acta bill proposed by Democratic Senator Bob Casey that seeks to “direct the Federal Trade Commission to issue regulations to establish the contraction of inflation as an unfair or deceptive act or practice.”

Vice President Kamala Harris also incorporated food prices into her 2024 presidential campaign, noting that she would seek to combat price gouging and “greed” if elected, a position that the grocery industry is sharply divided.