Connecticut Attorney General Expands Grocery Price Investigation to Distributors

Connecticut Attorney General William Tong announced today that his office is broadening its investigation into the state’s high grocery prices, now focusing on major food distributors rather than retailers.

The inquiry, initially launched in 2024 at the request of state legislators concerned about sustained price increases following the pandemic, previously found no evidence of illegal price gouging at the retail level. However, Tong stated that grocers are facing “the same unsustainable market forces hurting consumers.” “No one needs a report to see that grocery prices are way too high and that Connecticut families are getting squeezed,” Tong said in a statement. The expanded investigation aims to determine if unfair profiteering is occurring further up the supply chain.

The Attorney General’s Office has sent letters to five major food distributors operating in Connecticut, requesting meetings and data related to their pricing practices, including information about “shrinkflation” – the reduction of product sizes while maintaining prices. The initial phase of the investigation examined pricing trends for nine staple food items – beef, chicken, bread, milk, eggs, bananas, apples, carrots, and almonds – between March 2019 and June 2024. These findings echo a Federal Trade Commission report from March 2024, which also proved inconclusive regarding the causes of ongoing grocery inflation. Rising food costs disproportionately impact lower-income families and those on fixed incomes.

While Connecticut’s price-gouging statute doesn’t currently apply to wholesalers and distributors, Attorney General Tong successfully advocated for an expansion of the law earlier this year to include them. His office now has the authority to pursue civil penalties, restitution, and injunctions should evidence of illegal profiteering emerge, as detailed on the Connecticut Attorney General’s website.

The investigation is ongoing, and the Attorney General’s Office will continue to assess data and meet with distributors to understand the full scope of pricing pressures.