Harris Applauded for Proposing First-Ever Ban on Corporate Price Gouging
"It's wonderful to see the vice president unleash a suite of policy proposals to crack down on these cheaters and protect Americans' pocketbooks," said one advocate.
Economic justice advocates on Thursday applauded the Harris campaign's announcement the Vice President Kamala Harris is planning to unveil a historic ban on food and grocery price gouging amid widespread discontent about costs that have ballooned by 26% in the last five years.
The Democratic presidential candidate is expected to unveil the proposal for the first-ever federal price gouging ban at a rally in Raleigh, North Carolina on Friday, detailing plans to direct the Federal Trade Commission (FTC) to impose "harsh penalties" on companies that hike food prices to pad their profits.
As president, the campaign said late Wednesday, Harris would set "clear rules of the road to make clear that big corporations can't unfairly exploit consumers to run up excessive corporate profits on food and groceries," building on actions President Joe Biden has taken, such as the creation of a Strike Force on Unfair and Illegal Pricing and his guidelines aimed at reining in corporate mergers.
The rules would be introduced in Harris' first 100 days in office, should she win the presidential election in November.
Wenonah Hauter, executive director of Food & Water Action, said Biden and Harris have set out to correct "decades of failure by federal leaders to tackle food monopolies [that] have sent grocery prices skyrocketing."
"President Biden finally turned the corner with real action against ill-advised corporate mergers, and the Harris campaign's signals of intent to work even harder against food profiteering are encouraging," said Hauter. "We look forward to seeing robust antitrust policy that will make a difference in our wallets, and send the food monopolies packing."
Food & Water Action pointed out that the proposal came a day after it was announced that the multinational food company Mars would acquire its competitor, Kellanova, for $36 billion "in a bid to dominate snack market sales at consumers' expense."
Such acquisitions have continued, said Food & Water Action, even as the monthly food cost for a family of four sticking to inexpensive groceries to save money increased 50% over the past four years, while the top four grocery companies in the U.S. saw their revenues go up as much as 36%.
"The cost of a whole chicken rose 41%, while poultry giants Tysons Foods and Perdue saw revenue increases of 22.5% and 54.9%, respectively," said the group.
While grocery prices have gone up by just 1% in the past year, costs have not eased since they shot up due to supply chain and labor issues during the coronavirus pandemic.
A Gallup poll in May found that 41% of Americans viewed the high cost of living as the most pressing financial issue for their families, and a survey by public opinion research group Blueprint found in June that penalties for companies that price gouge had the support of 81% of respondents, including 86% of Independent voters.
"It's hard to get down an aisle in the grocery store without finding an example of price gouging or price fixing, and it's costing us dearly," Lindsay Owens, executive director of the think tank Groundwork Collaborative, told The Washington Post. "It's wonderful to see the vice president unleash a suite of policy proposals to crack down on these cheaters and protect Americans' pocketbooks."
On social media on Thursday, Owens exposed "some of the worst offenders" who raise prices with the goal of boosting profits—a major driver of inflation, according to an analysis by Groundwork earlier this year.
"Practices like shrinkflation (that half empty bag of chips) and it's evil twin skimpflation (like when Wishbone salad dressing swaps the oil for water), or Walmart rigging the produce scales to charge a little more on a pound of oranges, are everywhere," said Owens. "It's wonderful to see that Harris will address her plans to take on price gouging in the food and grocery sector tomorrow. She has a strong track record of going after cheaters from her time as California's top lawyer, and through her great work this past four years."
As Americans express strong support for price gouging penalties, said David Sirota, founder of The Lever, Harris' proposal will "inevitably" push Republican presidential nominee Donald Trump into defending corporations that willfully force families to pay more for essentials.
The proposal will "bait the entire American right into screaming, 'Let them eat cake' as they go on record in support of food conglomerates fleecing the working class," said Sirota.
