Minnesota Joins Growing State-Level Movement to Combat Grocery Consolidation

Minnesota lawmakers are considering legislation banning price discrimination in the grocery industry, joining states like Rhode Island in the fight against predatory buying and corporate consolidation that harm independent grocers and consumers alike. Minnesota lawmakers held a hearing on HF2149, the Consumer Grocery Pricing Fairness Act. ILSR’s Ron Knox provided testimony highlighting how corporate concentration in the grocery industry has led to skyrocketing prices and record profits for major chains while consumers struggle with affordability.

Minnesota’s bill is the latest in a growing state-based movement against monopoly abuses in the grocery sector. Rhode Island has been at the forefront with its proposed Fair Pricing Act, which similarly aims to prohibit price discrimination that favors dominant retailers over smaller competitors. 

In his testimony, Ron pointed to price discrimination as “the root of this particular evil” in the grocery industry. When the federal government stopped enforcing laws against price discrimination four decades ago, it triggered the concentration of the retail economy we see today. Minnesota Representatives Greenman and Schultz introduced the bill to address these issues in the grocery sector. Like Rhode Island’s proposal, Minnesota’s bill would ensure that suppliers cannot offer preferential terms to dominant retailers that aren’t made available to smaller competitors. It would also close key loopholes that powerful retailers and consumer goods companies have exploited to maintain their dominance in the retail food industry.

“If lawmakers want to witness an economy in which grocery prices are sky high and getting higher by the day, they can simply look at the supermarket industry right now, where corporate dominance and concentration are the norm, corporate profits are skyrocketing, and many shoppers struggle to afford a cart full of groceries,” Knox testified.

The collective action of states like Minnesota, Rhode Island, and others is critical and could help spur and reinforce federal attention on the importance of antitrust enforcement.

You can watch the bill hearing here. For more on what states can do to rein in monopoly power, check out ILSR’s package of resources to help state enforcers, lawmakers, and advocates turn back the tide of outsized corporate power and support strong, equitable economies within their borders. 

• The State(s) of Antitrust: An in-depth policy brief that details states’ role in enacting and enforcing antimonopoly laws and why states’ leadership in taking on runaway corporate power is crucial today.
  
• Mapping Our State Antitrust Laws: An interactive map of state antitrust laws around the country, giving lawmakers, staff, and advocates an understanding of what laws are in place and how they might be improved.
  
• Strengthen and Enforce State Antitrust Laws: A quick-hitting policy guide that outlines specific enforcement actions and legislation states can use to fight back against monopoly and corporate concentration.
• How State Policymakers Can Take On Monopolies and Rebuild Local Economies: The recording of our recent event with State Innovation Exchange, featuring Attorneys General Keith Ellison of Minnesota and Kris Mayes of Arizona, spotlighting how states can take action.