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Arkansas Joins USDA to Probe Grocery Price Gouging

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Wednesday, July 26, 2023   

Attorneys general from more than 30 states including Arkansas recently announced a bipartisan effort to bring down costs and create more choices at the supermarket.

State law enforcement agencies are pledging to work with the U.S. Department of Agriculture's new Agricultural Competition Partnership to investigate price gouging in the food industry.

Arkansas has a law on the books prohibiting businesses from price gouging during a state of emergency.

Teresa Murray, consumer watchdog with the Public Interest Research Group, said while recent inflation spikes have been a factor, it is worth taking a closer look.

"We very much believe in a free market," Murray emphasized. "But not when it comes to crossing the line of trying to take advantage of individuals and families who are just trying to feed their kids. "

Beyond price structures, the USDA noted Arkansas and affected states will also be on the lookout for conflicts of interest, misuse of intellectual property, and anticompetitive barriers across the food and agriculture supply chains. Business groups such as the U.S. Chamber of Commerce oppose the move, calling it an "overreach."

Murray noted while there have been rumblings about these issues, it is hard to go into a grocery store, observe higher prices, and know for sure whether corporate greed is at play.

"What are the manufacturing costs? What are the labor costs, which probably have gone up? What are the supply-chain costs? What are the distribution costs?" Murray outlined. "And then where, at the end, is there a profit, and is anybody along the way taking advantage of the situation?"

Murray added there is no real federal statute addressing price gouging, so state enforcement will be important. Arkansas's price gouging law is triggered whenever a state of emergency is declared by federal, state or local governments. But not all states do, and some are limited in scope.


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