The Attorney General of Connecticut is launching an inquiry into grocery price gouging
Attorney General William Tong, alongside Democratic Senate leaders, announced on Thursday the initiation of an investigation into potential price gouging practices by Connecticut grocery stores.
The decision to start the inquiry was prompted by a Federal Trade Commission report, revealing that grocery chains nationwide had used the COVID-19 pandemic to raise prices and increase profits, a trend that persists today.
"Grocery stores have made a mess on aisle five, and we need the Attorney General to help us clean it up," said Senate Majority Leader Sen. Bob Duff, D-Norwalk.
In response, Republicans in the General Assembly attributed high grocery prices to President Joe Biden and Connecticut's Democratic Party.
The FTC report highlighted that grocery chains had expanded profit margins while attributing price hikes to pandemic-related supply chain disruptions. For instance, food and drink retailers' revenue surpassed costs by more than 6% in 2021, higher than the peak of 5.6% in 2015. In the first three quarters of 2023, this margin further increased to 7%. The report also suggested that up to 50% of food price inflation could be attributed to price gouging.
"This data raises doubts about claims that grocery prices are merely responding to retailers' rising costs due to inflation," Duff stated.
Connecticut has laws prohibiting price gouging during crisis declarations for goods and services, typically applying to post-storm and emergency situations.
"We're here today to announce that the state of Connecticut is investigating grocery and food prices at our state supermarkets, focusing on determining whether prices for everyday groceries are unreasonably, excessively, and unlawfully high," Tong said.