The other issue is what’s going to keep prices low at these stores?
A hugely important piece of history here is the Robinson-Patman Act. I’ll throw a bit of AI slop for context, but it’s consistent with what I know. Basically, the direction to the FTC to stop enforcing this act is what created food deserts and Walmart.
From the 1930s until the early 1980s, the Robinson-Patman Act was enforced by the Federal Trade Commission (FTC), ensuring that suppliers offered similar pricing to all retailers, regardless of size. This allowed independent grocers to compete effectively with large chains.
No, the Robinson-Patman Act was not repealed, but its enforcement by the government was virtually non-existent for decades until the Federal Trade Commission (FTC) recently began reviving its enforcement in 2021. While the act remains on the books, it was largely unenforced for a period, but recent actions by the FTC indicate that it is still considered a live statute, say Norton Rose Fulbright, American Bar Association, and Every CRS Report.
- History of non-enforcement: The Department of Justice announced it would stop enforcing the act in 1977, and the FTC had not brought an enforcement case since 2000.
- Reasons for non-enforcement: Enforcement agencies largely abandoned the act due to concerns that it could harm consumers by punishing legitimate volume discounts and that it was anticompetitive, say The Federalist Society, Anderson Kill P.C., and American Economic Liberties Project.
- Recent revival: In recent years, including under the Biden administration, the FTC has signaled renewed interest in enforcing the act and has initiated investigations into potential violations.
A classic example of this is the story where Walmart almost put Vlassic pickles out of business.
The easier way would be to make a law that mimics Robinson-Patman and actually enforce it within the confines of NYC.
But hey, I’m willing to see what happens.