Nashville Dems call on AG to combat "price gouging"
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Two Nashville lawmakers are urging Tennessee Attorney General Jonathan Skrmetti to join a bipartisan federal effort to fight "price gouging" in grocery stores.
Why it matters: Grocery prices continue to be a pervasive problem for families. Data from earlier this year indicated Tennessee had the second-highest inflation rate in the country.
Between the lines: State Sen. Charlane Oliver and state Rep. Aftyn Behn, both Democrats, called on Skrmetti to add Tennessee to the Agricultural Competition Partnership, a coalition of attorneys general working together to reduce grocery prices.
- As of Monday, 33 AGs had joined the group, including from conservative states like Wyoming and Arkansas.
What they're saying: In a letter to Skrmetti last week, Oliver and Behn argued that high grocery prices "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."
How it works: The program provides federal funds to states for technology, research, education and enforcement of food pricing regulations.
The intrigue: In a letter responding to the lawmakers on Friday, Skrmetti said he wanted to see the federal partnership show signs of being "worthwhile" before he commits to joining.
- "Grocery stores run notoriously thin profit margins," Skrmetti wrote in his letter. "The [U.S. Department of Agriculture] itself identified the main drivers of the massive recent grocery price increases as inflation, bird flu, and the disruption of Ukraine's grain production. There are some bad actors out there, but most of the price increases appear to be the result of either bad federal policy or bad luck."
- Skrmetti touted his work to combat grocery prices, including an antitrust lawsuit last year against a company called Agri Stats. The state claimed the company's anti-competitive practices caused pork, turkey and chicken prices to rise.
The big picture: The push from Tennessee Democrats comes as Vice President Kamala Harris has made combatting soaring food prices a key component of her presidential campaign.
- Axios' Emily Peck reports that one of Harris' most controversial policy proposals is a ban on grocery price gouging, though the campaign has been light on details.
- Many states have bans on grocery price gouging, which are triggered by natural disasters like hurricanes. Once triggered, some laws explicitly prohibit price hikes above a certain threshold, anywhere from 10% to 25%. Other state laws are more subjective.
- U.S. Sen. Elizabeth Warren drafted legislation earlier this year to ban such price gouging nationally.
The other side: Critics have compared the idea to Soviet-style price controls, and called the policy idea "Kamunism."
- "In a competitive industry, government efforts to control prices tend to make products either more expensive or less available," Skrmetti said in his letter.
Flashback: During the legislative session, Behn proposed a permanent cut on the state grocery tax.
- Behn's plan didn't advance, and instead the Republican majority passed a law allowing local governments to reduce their portion of sales tax on groceries.