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Once the FTC votes to authorize the study, major grocery chains
would be ordered to provide information on their costs and
prices on common products. Khan made the announcement at a
public meeting with Justice Department officials on pricing
practices.
The biggest U.S. industry players include Walmart; club grocery
chain Costco Wholesale Corp; Amazon.com, which operates Whole
Foods; and big box retailer Target.
Food prices have risen 25% between 2019 and 2023, faster than
other consumer goods and services, U.S. Department of
Agriculture statistics showed. An FTC study showed food prices
for U.S. consumers rose 11% between 2021 and 2022, while profits
for food retailers went up more than 6%.
"We want to make sure that major businesses are not exploiting
their power to inflate prices for American families at the
grocery store," Khan said.
The FTC has played a major role in the Biden administration's
efforts to cut costs for U.S. households, targeting high prices
and junk fees on products and services ranging from airfare to
credit cards.
Billionaire Democratic donors, some affiliated with businesses
the FTC has sued, have urged Vice President Kamala Harris, the
Democratic presidential nominee, to replace Khan if elected.
The agency last week launched an inquiry into services that
could let companies set different prices based on the shopper's
personal information.
The FTC earlier this year sued to block Kroger's acquisition of
smaller grocery store rival Albertsons, citing concerns the deal
would hike prices for millions of Americans.
(Reporting by Jody Godoy; Editing by Richard Chang)
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