Democrats urge AG to join effort against price gouging on groceries

Sen. Charlane Oliver, Rep. Aftyn Behn focus on cutting costs for Tennessee families

NASHVILLE—With Tennesseans experiencing some of the highest rates of inflation in the nation, Sen. Charlane Oliver, D-Nashville, and Rep. Aftyn Behn, D-Nashville, are urging Tennessee’s Republican attorney general to join a bipartisan, federal task force dedicated to combating corporate price gouging in the grocery sector.

In a letter dated Aug. 19, Sen. Oliver and Rep. Behn call on Attorney General Jonathan Skrmetti to take decisive action to protect families from unfair price hikes at the grocery store.

In their letter, Sen. Oliver and Rep. Behn highlighted the urgency of the situation by pointing to a recent report by Moody’s Analytics that showed Tennessee has the second highest inflation rate in the country. This surge in inflation is taking a heavy toll on cash-strapped working families, particularly when it comes to affording basic necessities like groceries.

To help address this issue, Sen. Oliver and Rep. Behn are urging Attorney General Skrmetti to join the Agricultural Competition Partnership, a bipartisan coalition of 31 state attorneys general working in collaboration with the U.S. Department of Agriculture. The task force is focused on reducing food prices by addressing corporate consolidation and anti-competitive practices in the agricultural markets.

“High prices at the grocery store have weighed heavily on Tennessee families, and they deserve to know that their state government is taking every possible step to ensure fairness in the marketplace,” said Sen. Charlane Oliver. “Joining this task force would demonstrate our commitment to protecting consumers and promoting economic fairness for all Tennesseans.”

Rep. Aftyn Behn echoed these sentiments, emphasizing the need for proactive measures to support Tennessee families. “Instead of providing tax relief to working families, the Republican Party chose to give billions in tax breaks to property-rich corporations,” said Rep. Behn. “We are undeterred in our mission to find new ways to reduce costs for families, promote fair competition, and grow Tennessee small businesses.”

There is broad support among Americans of all political stripes for government action to address inflation by placing a check on corporate greed. A May report from Navigator Research showed that Americans ranked “cracking down on price-gouging corporations” as the best way to address inflation.

This latest move against corporate price-gouging from Sen. Oliver and Rep. Behn aligns with their legislative goal to eliminate Tennessee’s sales tax on groceries, one of the few states that still imposes such a tax.

Instead of giving the duo’s grocery tax cutting bill a fair hearing this year, Republicans in the state legislature opted to pass a $5.5 billion tax handout for large corporations instead.

Nevertheless, Sen. Oliver and Rep. Behn remain committed to finding alternative ways to support Tennessee families and ensure they have access to affordable groceries.

The full text of the letter can be found here:

August 19, 2024

Attorney General Jonathan Skrmetti
Office of the Attorney General and Reporter
P.O. Box 20207
Nashville, TN 37202

Dear Attorney General Skrmetti,

We are writing to you to address several critical issues that are currently impacting the residents of Tennessee. First and foremost, the issue of rising grocery bills has become particularly acute in our state. According to research by Moody’s Analytics, as reported by The Knoxville News Sentinel in April, Tennessee currently has the second highest inflation rate in the nation, surpassed only by Florida. This surge in inflation has placed a considerable burden on working and middle-class families, who are struggling to keep up with the cost of essential goods and services.

In light of this pressing issue, we strongly urge you to join the Agricultural Competition Partnership, a bipartisan coalition of 31 state attorneys general working in collaboration with the U.S. Department of Agriculture. This initiative aims to harness all available legal enforcement tools at both the state and federal levels to help lower food prices and promote fair competition in agricultural markets.

Moreover, with U.S. Vice President Kamala Harris calling for a federal ban on food and grocery price gouging to reduce consumer costs, the timing is particularly right for Tennessee to join this coalition.

High prices at the grocery store have weighed heavily on Tennessee families, and they deserve to be reassured that their state government officials are doing all we can to ensure fairness in the marketplace.

For instance, we are working to build support at the General Assembly for legislation that delivers a meaningful tax cut to working families by eliminating the sales tax on food products.

By joining this coalition, your office would be taking a proactive stance in combating price gouging and price fixing, demonstrating a commitment to protecting consumers and promoting economic fairness.

Corporate consolidation and anti-competitive practices in food and agricultural markets have had a detrimental impact on the U.S. economy, leading to unfair competition and increased prices for families. By joining the Agricultural Competition Partnership, your office would play a crucial role in addressing these issues and working towards solutions that can bring down the cost of groceries for Tennessee families. Additionally, this partnership can help find ways to boost wages for family farmers and small agricultural businesses, which are vital components of our state’s economy.

We understand that there may be concerns regarding the costs associated with joining the Agricultural Competition Partnership. However, it is important to note that your office’s budget has increased by nearly $20 million annually over the last five years. Any expenses incurred in this endeavor would be tax dollars well spent, as they directly benefit Tennessee families and small businesses by working to lower grocery costs and enhance economic opportunities for local farmers.

We believe that joining the Agricultural Competition Partnership aligns with our shared goal of protecting consumers and ensuring fair market practices. Your leadership and commitment to this cause would make a significant difference in the lives of many Tennesseans.

Thank you for your attention to this matter. We look forward to your positive response and to working together towards a more competitive and equitable agricultural market in Tennessee.

In Service,

Charlane Oliver
State Senator, District 19
Tennessee General Assembly

Aftyn Behn
State Representative, District 51
Tennessee General Assembly