The Federal Trade Commission reached a settlement with Southern Glazer’s earlier this month that restricts the liquor distributor from charging small retailers much higher prices for products than nearby chain stores. The lawsuit was the first action to enforce provisions of the Robinson-Patman Act, which protects competition for small businesses, in nearly 25 years.
The Main Street Competition Coalition, a group of independent businesses combating market power abuses that are squeezing out Main Street, of which NCPA is a founding member, said the settlement addresses only one side of the problem of sellers’ illegal discrimination against independent businesses. It urged the agency to focus on the buying power of national chains, whose scale allows them to “extract preferential terms unrelated to legitimate cost savings and then deploy those advantages to undercut competitors.”
“America is stronger when Main Street is strong, but that foundation is eroding as independent businesses get squeezed by dominant buyers extracting advantages unavailable to everyone else. The FTC is right to hold sellers accountable for unlawful discrimination. If the Commission wants to address the problem at its source, its next case should focus on buyer power,” said Chris Jones, the coalition’s executive director.
Growing a grassroots effort
The coalition is a nationwide network of independent businesses and trade associations dedicated to preserving a level playing field, expanding economic opportunity, and ensuring competitive markets work for Main Street. NCPA members can join this grassroots effort at no cost.
Members receive a weekly newsletter and policy updates, access to advocacy-focused conference calls, education on legal rights and options under antitrust laws, and advocacy and representation before agencies, Congress, and state legislatures. You’ll also be able to provide input on the coalition’s policy agenda and platform, and to participate in issue and advocacy working groups.
Learn more and get in touch with MSCC here. You can apply for MSCC membership here; NCPA members can claim their free MSCC membership by selecting “Free - NCPA member” as their dues tier under the “Applicant Information” section.
