A small US grocer is calling out the lower prices at big chains

"When a grocer is faced with those sorts of pricing dynamics in an industry that has razor-thin margins, it makes it incredibly difficult to compete - and it contributes to closures. Price discrimination strains not just grocery stores, but also independent bookstores, locally-owned pharmacies and a range of other business sectors."

"The Robinson-Patman Act, the 1936 Depression-era law was brought back to life at the end of former president Joe Biden's term having not been enforced for decades. Biden administration regulators filed two lawsuits under the act - one against a major alcohol distributor and one against PepsiCo."

"While some commentators call for the robust enforcement of the Robinson-Patman Act, others say this would not benefit consumers, and would instead raise prices for shoppers. Daniel Francis, a law professor at New York University, says other tactics, like easing the tax and regulatory burden of small retailers, would give them more support."

Small business owners face significant challenges from price discrimination, where large suppliers offer preferential pricing to major chains while charging independent retailers higher prices. This practice particularly affects grocery stores, bookstores, and pharmacies operating on thin margins. The Robinson-Patman Act, a 1936 Depression-era law prohibiting such discriminatory pricing, has been revived after decades of dormancy. The Biden administration filed lawsuits under this act against major suppliers like PepsiCo and alcohol distributors. However, debate continues over enforcement effectiveness, with some arguing it would raise consumer prices while others suggest alternative solutions like reducing tax and regulatory burdens on small retailers.

Read at BBC News