Consumer groups are accusing major grocery retailers - like Amazon, Kroger and Walmart - of price gouging, both during and after the pandemic.

The allegation of corporate greed comes after a new report from the Federal Trade Commission found profits for grocery chains jumped sharply, at rates that could not be justified by supply chain disruptions.

Angela Huffman is president of the nonprofit Farm Action.

"It's one thing to raise your prices to cover higher expenses, but what these companies did is use the pandemic as an excuse to exploit the American people who needed to put food on their tables," said Huffman. "And the FTC report shows that they're still doing it, here in 2024."

The report found that retailer profits rose to 6% over total costs in 2021, and 7% in the first three quarters of 2023 - compared to 5.6% in 2015.

According to a report from Help Advisor, California households pay the highest grocery costs in the country, averaging almost $300 a week - about $27 more than the national average.

The Food Industry Association blames today's high prices on high labor costs and credit card payment fees.

Huffman said she thinks the feds should take anti-trust action to increase competition - and consider forcing the grocery behemoths to break up.

"That would be the ideal outcome is to take away their excessive power," said Huffman. "But other than that, these companies can be fined for this kind of price gouging. And that's another action we would support. There needs to be some kind of consequences."

The FTC staff report recommends "further inquiry by the commission and policymakers," but doesn't propose specific remedies.




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Massachusetts residents struggling to pay high food prices are acquiring a growing amount of debt to pay their bills, according to a new report.

The Urban Institute found 60% of adults reported using credit cards to buy groceries but only 20% managed to pay the minimum monthly payment.

Kassandra Martinchek, senior research associate at the Urban Institute, said nearly 25% of families have dipped into savings to keep everyone fed.

"Some families are really struggling to even meet their basic needs and are taking riskier financial strategies that could leave them less capable to cope with a future financial shot," Martinchek pointed out. "Something like losing their job."

While U.S. inflation slowed last year, the average Massachusetts household continued to spend more than $270 a week on groceries with Boston ranking in the top 20 cities with the highest grocery prices.

The report shows adults with very low food security were also more likely to experience challenges in repaying their debt compared with those with less severe food hardship. For families taking advantage of "buy now, pay later" options, 37% reported missing payments on their loans.

Martinchek emphasized missed debt payments during a time of price hikes could have long-lasting effects.

"They could have constrained access to affordable credit options and struggle to take advantage of different wealth building opportunities," Martinchek noted.

Martinchek added it is especially the case for historically disadvantaged households. The report suggests policymakers strengthen social safety nets to help families as pandemic aid expires, and to bolster credit counseling and debt-management services.

Ohio lawmakers are exploring ways to address the state's looming retirement crisis.

According to The Pew Charitable Trusts, if the personal retirement savings situation remains unchanged, Ohio could expect to see a more than $11 billion increase in state spending over the next two decades.

House Bill 501 would create a Joint Legislative Study Committee tasked with studying retirement options for small businesses and state-facilitated workplace programs to improve access to retirement savings.

Amy Milam, associate state director of outreach and advocacy for AARP Ohio, said people are more likely to save for their golden years when they can do so by having a percentage of their paycheck deducted.

"In Ohio, we have 42% of Ohio's private sector workers -- that's roughly 1.8 million people -- who do not have access to a retirement savings plan through their employer," Milam reported.

Nationwide, around 64% of Hispanic workers, and 45% of Asian American workers lack access to an employer-provided retirement plan. According to an AARP report, almost three of four workers with less than a high school diploma lack a work-based retirement plan, a much higher percentage than those with a bachelor's degree.

Milam added more than a dozen other states have created partnerships with employers to offer state-sponsored plans to give employees access to Individual Retirement Accounts.

"Giving employees a simple way to save for retirement on the job means that fewer Ohioans will need to rely on public assistance later in life," Milam emphasized. "Which will benefit the individual and will also benefit the state by saving taxpayer dollars."

In some states, investment companies have pushed back on state-sponsored plans, seeing them as competition. But a 2023 survey by AARP found 92% of Ohio business owners support legislation creating a public-private retirement savings option for workers.

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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