The latest legal trend in America involves companies being sued for predatory pricing—a practice of keeping prices below those charged by competitors to eliminate rivals. Recent reports reveal that the so-called Main Street Competition Coalition, led by a former small and midsize grocery chain lobbyist, a Biden administration official, and trial lawyers, is actively lobbying to abolish volume discounts under the 1936 Robinson-Patman Act (RPA).
The RPA was designed to shield mom-and-pop stores from competition with chains offering bulk discounts. Historically dismissed as a flawed New Deal policy, it remained largely forgotten until recently. Under Chair Lina Khan, the Biden Federal Trade Commission reactivated the RPA to strengthen antitrust enforcement—a move that drew widespread support from liberal activists and aggressive litigation firms.
With the Trump Federal Trade Commission removing key commissioners like Khan and abandoning Biden-era cases, coupled with Congress’s reluctance to update the law, these groups have shifted focus to courts to dismantle retail volume discounts. Legal experts warn the RPA could trigger massive settlements against major retailers under the guise of “price discrimination” lawsuits. If successful, such actions would force consumers to pay higher prices.
The RPA’s original logic was valid when chain stores were new. Today, nationwide retailers leverage economies of scale to keep prices low for millions and drive competitors to improve efficiency across groceries, appliances, TVs, cellphones, computers, and cars. Walmart alone has saved American households tens of billions through bulk sales.
A recent case involving PepsiCo illustrates the issue: The company faced false claims for offering 12-packs of soda at affordable prices—far below single-can pricing—under the Biden FTC’s oversight. Trump’s FTC dismissed these allegations, but similar lawsuits now target retailers, signaling to companies that cutting costs risks legal action.
Critics argue this movement harms consumers most. In New York City, Mondelez, maker of Oreos and other snacks, has stopped direct deliveries to 1,000 independent grocers like Foodtown and Key Food—citing parking and delivery issues—while serving only larger chains such as ShopRite and Wegmans. Independent stores now pay $5.99 for Oreos (up from $6.99) and have accused Mondelez of RPA violations. Mayor Zohran Mamdani supports legislation that would ban favoring chain retailers, potentially forcing Mondelez to abandon the market or pass delivery costs to all outlets—including high-volume stores—raising prices for New Yorkers.
A recent study shows a Robinson-Patman revival could spike grocery prices by 5-10%, disproportionately burdening rural families and low-income communities. This translates to over $500 extra annually per household—a sum that would otherwise remain in working-class pockets during ongoing inflation. The legal doctrine behind the RPA is obsolete as the black-and-white TV; decades of ignoring it have fostered competitive pricing that delivers tangible consumer savings at the checkout line.
Laws targeting price cuts risk making America more expensive again, not less.
