H.R.1788 - Fair Grocery Pricing Act (119th Congress)
Summary
H.R. 1788, the "Fair Grocery Pricing Act," aims to prevent food producers from using algorithmic systems to artificially inflate prices or reduce the supply of food. The bill defines key terms like "consciously parallel pricing coordination" and "coordinator" to target tacit agreements and services that facilitate anti-competitive behavior. It empowers the Federal Trade Commission (FTC), the Attorney General, and state attorneys general to enforce the Act, providing avenues for civil actions by injured parties.
Expected Effects
The Act would likely increase government oversight of food pricing practices and potentially lower grocery prices for consumers by preventing algorithmic price manipulation. It could also lead to increased litigation and compliance costs for food producers and coordinators. The bill seeks to ensure fair competition in the food industry.
Potential Benefits
- Prevents artificial inflation of food prices, potentially lowering costs for consumers.
- Promotes fair competition among food producers.
- Empowers consumers to take legal action against price manipulation.
- Provides additional enforcement tools for the FTC and state attorneys general.
- Could lead to greater transparency in food pricing.
Potential Disadvantages
- May increase compliance costs for food producers, potentially leading to higher prices in some cases.
- Could stifle innovation in pricing strategies.
- May lead to increased litigation, burdening the court system.
- The definition of "consciously parallel pricing coordination" may be difficult to prove.
- Potential for unintended consequences on supply chains.
Constitutional Alignment
The bill's focus on regulating commerce aligns with the Commerce Clause (Article I, Section 8, Clause 3) of the U.S. Constitution, which grants Congress the power to regulate interstate commerce. The enforcement mechanisms provided to the FTC and Attorney General are consistent with the government's role in regulating markets to prevent anti-competitive practices. The bill does not appear to infringe on any specific constitutional rights or freedoms.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).