1. This is a beautiful piece about the local grocers that have opened in struggling food-desert communities — only to find that they must pay suppliers much higher prices than the big boxes, making it difficult to stay open. The solution is simple: resume enforcing the Robinson-Patman Act. - ThreadSky

stacyfmitchell.bsky.social • 53 days ago

1. This is a beautiful piece about the local grocers that have opened in struggling food-desert communities — only to find that they must pay suppliers much higher prices than the big boxes, making it difficult to stay open. The solution is simple: resume enforcing the Robinson-Patman Act.

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stacyfmitchell.bsky.social•53 days ago

2. One of the grocers highlighted is Aaron Johnson, who opened a glorious supermarket, Oasis Fresh Market, in Tulsa. The neighborhood hadn't had a grocery store in 12+ years and had been overrun with dollar stores. You can hear AJ talk about how Oasis is more than a grocery store on our podcast:

stacyfmitchell.bsky.social•53 days ago

3. Another grocer highlighted is RF Buche, who opened Buche Foods in Pine Ridge, a Lakota community where people otherwise have to drive huge distances to buy food. Buche spoke at our Midwest Forum on Fair Markets, co-hosted with @openmarkets.bsky.social. You can see him speak on the first panel:

stacyfmitchell.bsky.social•53 days ago

4. Locally owned businesses are not like the chains in ways that matter a lot. They're part of their communities & their orientation is toward their neighbors, not Wall Street. The FTC's decision 40yrs ago to stop enforcing a law that is essential to their ability to compete was a terrible mistake.

stacyfmitchell.bsky.social•53 days ago

5. I'm grateful for the leadership of FTC Commissioner Alvaro Bedoya @bedoyaftc.bsky.social, who set out 3 years ago to revive the law. Last month the FTC filed its first RPA case in decades. In addition to this week's op-ed, read his excellent 2022 speech about the law:

stacyfmitchell.bsky.social•53 days ago

6/6. Finally, this isn't only a federal matter. States are also beginning to take action on price discrimination. You can learn more about this issue here (and sign up for our Hometown Advantage newsletter to get involved): https://ilsr.org/independent-business/the-robinson-patman-act/

adventurer56.bsky.social•51 days ago

Awesome article. Thanks!!

sherman1890.bsky.social•52 days ago

If history is consistent most sellers forced to charge the same price for smaller buys will simply stop selling to them — always legal under RPA.

stacyfmitchell.bsky.social•51 days ago

That trend of cutting off smaller retailers is relatively recent — and it's a direct product of the enforcement failure. In a more dispersed market, sellers looking at that option would face much greater sacrifice (of market access) and risk (of competing brands focusing on smaller retailers).

sherman1890.bsky.social•51 days ago

No. The statute expressly permitted cutting off. “Nothing shall prevent persons engaged in selling … from selecting their own customers” 15 USC 13. you could not sell large and small lots at different prices but you could refuse to sell the small one. Stat did much more harm than good.

sherman1890.bsky.social•51 days ago

If a large buyer like Costco is getting a competitive price a seller forced to charge the same price for a smaller buy will simply decline and the courts made clear that its lawful

sherman1890.bsky.social•51 days ago

The refusal to sell cases date back to the 1940s and hold consistently that a refusal to sell is not a violation

stacyfmitchell.bsky.social•43 days ago

I understand that. But you didn't actually respond to my point. Refusal to sell has become widespread because of the market concentration created by not enforcing RPA. Refusal wasn't nonexistent in the '40s, but competition & options made it a riskier and rarer strategy, and far less damaging

sherman1890.bsky.social•43 days ago

Do you have data indicating that rhe frequency of refusals has increased recently? Id like to see it.

stacyfmitchell.bsky.social•43 days ago

Just about anyone who's worked for a long time in the retail/distribution industry will tell you that's the case. But you are still not actually responding to my point.

antitrustguy.bsky.social•43 days ago

The OpEd says the nearest big box store is 50 miles away. Discrimination in favor of that big box store has no impact on competition and thus is not reached by the RP Act regardless.

sherman1890.bsky.social•43 days ago

Yes the favored and disfavored sellers have to be in competition with each other.

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