A new report from the Federal Trade Commission casts doubt on the idea that rising grocery prices in Maryland and nationwide have been due to retailers' rising costs.
In 2021, the Biden administration FTC began studying America's supply chains including the retail grocery sector. Commissioners examined how COVID-era supply chain disruptions impacted competition among retailers, wholesalers and producers, and how consumers and businesses were affected.
While food price inflation had been less than 2% for several years, the steep rise in grocery prices since COVID saw a 6% annual rate by 2021, and 10% the next year.
Angela Huffman, president of the advocacy group Farm Action, said the report shows while grocers have seen rising costs, public data suggests profits have risen faster than costs.
"In 2021, the retailer revenues rose to more than 6% higher than their total costs, and those profits are still going up," Huffman pointed out. "In the first nine months of 2023, the profits increased to 7%."
The report noted the consolidation in the sector with the top four grocery chains doubling their share of the market since 1990. Maryland has joined seven other states in the FTC lawsuit opposing the merger of Kroger and Albertsons.
In the face of supply-chain disruptions, the FTC report illustrates how large firms used anticompetitive practices to gain market share, at times forcing suppliers to avoid filling orders from smaller grocers. Commissioners found in responding to the disruptions created by concentrated supply chains, some grocers diversified suppliers, while others considered vertical integration with the idea of buying or building their own production capacity.
The report noted in some regions with few producers, the decision to buy an existing food supplier instead of building new capacity may leave remaining buyers worse off. Risks to consumers include retailers with increasing pricing power as well as supply issues for smaller grocery operators.
Huffman argued in some cases, the large firms could be broken up.
"This would be kind of the farthest extent of what they could do, but go so far as breaking them up," Huffman asserted. "In years past, they broke up the telephone companies and the railroads, and that would be the ideal outcome for us, is to take away their excessive power."
A November study found Marylanders faced the third-highest grocery price inflation in the nation, at 7%.
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UPDATE: A response has been added from the Alliance for Automotive Innovation. (2:02 p.m. PDT, May 14, 2024)
A new study showed the flame retardants used in the seats of many cars emit toxic gases, and recommended the federal government reevaluate its flammability standards.
Researchers at Duke University and the Green Science Policy Institute in Berkeley studied the air and foam from 101 cars model year 2015 and newer, and found traces of two carcinogens on California's Prop. 65 list of harmful chemicals.
Robert Herrell, executive director of the Consumer Federation of California, called on the National Highway Traffic Safety Administration or state officials to act.
"We would hope that the relevant federal authorities would take a look at this," Herrell urged. "They have indicated that they're aware of this study, they're reviewing it. In some cases, California chooses not to wait necessarily for the feds to act, and we can try to act ahead of that."
The Alliance for Automotive Innovation said in a statement, "Automakers are committed to sustainability and include approved flame retardants in all passenger vehicles to meet the flammability standards required by the federal government to reduce...deaths and injuries to motor vehicle occupants caused by vehicle fires."
The study, in the journal Environmental Science & Technology, found the chemicals are released into the air two to five times more often in the summer when the car is hot. It recommended people park in the shade, air out their cars before getting in and avoid using the recirculated air feature in their vehicles.
Herrell noted his group fought to get the government to require furniture manufacturers to phase out similar flame retardants.
"Historically, the auto industry has really lagged behind on safety and consumer protection issues," Herrell asserted. "More often than not, they've been sort of dragged kicking and screaming into the modern age."
The flame retardants at issue do not prevent burning but they slow a fire's progression. Many fires starting inside cars begin with a dropped cigarette, so some experts have suggested the feds update flammability standards with a new anti-smoldering requirement, which could be met without the use of these types of chemicals.
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Supply chain disruptions mean consumers who need prescriptions filled in Indiana and around the country are running into roadblocks.
Parents and caregivers have limited options, as the availability of generic medications is running low. There are several causes: Inoperable manufacturing plants cause production delays and back orders pile up. A key pharmaceutical ingredient needed to make a certain medicine has been discontinued, causing additional problems.
Veronica Vernon, assistant professor of pharmacy practice at Butler University, called the situation dire.
"We're seeing one of the worst cases of prescription drug shortages that we've seen in recent years," Vernon observed. "Unfortunately, this is a cause for concern because you go to the pharmacy and expect them to have the medication in stock, and they don't."
Vernon acknowledged pharmacists cannot guarantee patients when a certain medication will be delivered. She advised parents and caregivers to schedule refills up to two weeks in advance to make sure they will be ready on time, if the pharmacy can even get the medication.
According to Singlecare.com, atorvastatin, sold under the brand name Lipitor, was the most prescribed drug in Indiana last year. It's used to lower cholesterol.
The shortages affect both brand name and generic drugs. Vernon suggested keeping good lines of communication open with your pharmacist and asking if there are any negative health risks tied to taking a generic, if one is available.
"One of the most important things you can do is to always keep a list of your current medications with you," Vernon recommended. "And also keep a record of what you've tried in the past. When my patients experience a shortage, I'll say let's try this other medication that's in the same class is expected to have the same effect. Have you tried that before?"
Statista.com estimated the total market for generic drugs worldwide was estimated at $412 billion in 2022 and the figure is expected to increase to more than $600 billion by 2030.
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Just last month, a California man was sentenced to four years in prison for being the mastermind behind romance scams - in which he received hundreds of thousands of dollars from two elderly Arizona women - according to the Arizona Attorney General's Office.
One local group is sounding the alarm.
Dawn Alexander is a communications analyst with AARP Arizona, and wants to encourage all Arizonans to be mindful about who they're speaking to and how much information they're giving out.
"These romance scams, they'll start to ask for gift cards, they'll start to ask for money, and then they'll get more brazen," said Alexander. "A lot of times, it can easily turn into a money mule situation - which is basically they will eventually gain access to their bank accounts and start running money fraudulently through those."
Alexander added that while romance scams can start on dating apps, they can also start through less conventional avenues.
She added that romance scammers look to exploit the desire for love and companionship - and says warning signs can include professing love early on, someone who needs money to deal with an emergency, or an individual who makes plans to meet in person but never follows through.
Alexander contended that as technology and things such as artificial intelligence get more advanced, so do the scams.
She added that AI has enabled scammers to more easily produce things such as photos and videos which seem legitimate.
She said AARP has the AARP Fraud Watch Network, which is a free resource for both AARP members and nonmembers alike. She said if you're in doubt, there are those who are ready to help.
"They can reach out to AARP.org/fraudwatchnetwork or they can call a toll-free number, 1-877-908-3360," said Alexander, "and they will speak to an actual person who can assist them with any of their concerns."
Alexander said another tip is to never send money including wire transfers or cryptocurrency to a stranger or someone you met online, as she said they're wanting forms of payment to be what she calls "untraceable."
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