Reviving enforcement of the Robinson-Patman act would be a major step towards leveling the playing field for independent grocers and many other small businesses.
While many have long believed that food deserts arise in areas that just can’t attract a grocery store, Stacy Mitchell argues in The Atlantic that the modern food desert is actually a result of the federal government’s early-1980s decision to stop enforcing the Robinson-Patman Act. Before the 1980s, many neighborhoods that are now food deserts actually had a diverse and competitive grocery landscape. The problem isn’t the neighborhoods themselves; the problem is price discrimination.
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For decades the U.S. grocery industry was remarkably competitive, with independent grocers thriving alongside large chains like Kroger and Safeway. Virtually every neighborhood and small town had a grocery store, and many had several. Then, in the early 1980s, the government stopped enforcing the Robinson-Patman Act, a critical antitrust law that prohibits price discrimination by suppliers. Food deserts and higher prices followed.
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The Federal Trade Commission (FTC) is preparing to enforce the Robinson-Patman Act (RPA) once again, after decades of virtually no enforcement. Earlier this year, FTC Chair Lina Khan said, “We’re looking closely at areas where we might be able to do that in short order.” This fact sheet highlights why restoring enforcement of the law is crucially important to small businesses, consumers, and communities.
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"Consumers will feel the benefits through greater choice, lower prices, and vibrant neighborhood business districts," says Stacy Mitchell
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This virtual event featured Federal Trade Commissioner Alvaro Bedoya alongside community leaders, independent grocers, and advocates—to examine the ways dominant retailers exert their power, how...
e hope that this study will be followed in short order by renewed enforcement of the Robinson-Patman Act,” Stacy Mitchell says in the statement...
In this report, we look at how the dollar chains are using predatory tactics to kill off grocery stores and other local businesses, harming rural...
Powerful retailers are killing off small businesses by dominating supply chains. Our new report argues it’s time to revive the Robinson-Patman Act and restore antitrust...
In 203 markets, Walmart controls 50% or more of the grocery market. No other corporation has ever amassed this much control over the food system.