The National Grocers Association (NGA), representing more than 21,000 independent grocery retailers and wholesalers, has formally called on the US Federal Trade Commission (FTC) and Department of Justice (DOJ) to step up enforcement of existing antitrust laws to address what it describes as harmful buyer power abuses in the grocery retail sector.
The organisation’s buyer power letter to regulators warns that dominant market players may be using their purchasing leverage in ways that harm competition, raise costs for rivals and contribute to higher food prices for consumers and independent grocers.
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Grocers call for renewed competition oversight
In a letter dated 20 January 2026, the NGA urged the FTC and DOJ to apply established antitrust provisions, including the Robinson-Patman Act and Section 5 of the FTC Act, to curb discriminatory pricing practices and preferential treatment by large grocery buyers.
The association argued that lax enforcement of these laws over recent decades has enabled dominant retailers to secure preferential pricing, fees, promotional allowances and supply terms that are not accessible to smaller competitors, distorting normal pricing dynamics.
The Robinson-Patman Act, a 1936 US law designed to prohibit price discrimination that lessens competition, specifically seeks to protect smaller retailers from disadvantaged purchasing terms relative to larger rivals.
According to the NGA, such buyer power practices have a direct impact on independent grocers’ competitiveness, narrowing the field for smaller chain and family-owned stores. The group also cites recent court filings in an FTC case – though dismissed on procedural grounds – that detailed allegations of pricing arrangements used to sustain competitive advantages for large buyers while disadvantaging other retailers.
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By GlobalDataImpact on food prices and supply chain competition
The letter asserts that unchecked buyer power is not solely a matter of retailer rivalry but is also contributing to higher consumer prices and diminished food access, particularly in smaller and rural communities.
The NGA highlighted research showing that markets with higher retail concentration tend to experience faster price growth and stronger inflation pass-through, suggesting that reduced competition can elevate long-term grocery costs.
In addition to competitive implications for retailers, the association emphasised that excessive buyer power can adversely affect producers and farmers by suppressing upstream prices while increasing costs downstream, exerting pressure across the broader food supply chain.
Broader industry context and antitrust focus
The NGA’s appeal comes amid a broader backdrop of heightened antitrust scrutiny in the US food and retail sectors, where regulators and lawmakers have been exploring the impact of market concentration on pricing and competition.
Separate actions by the FTC and DOJ in recent years have focused on merger reviews and enforcement in food supply chains and grocery markets.
The association’s initiative reflects ongoing debates within the grocery industry over how best to balance competitive pressures, pricing dynamics and access to market opportunities for smaller and independent retailers in the face of increasingly consolidated retail power structures.
