Grocery Price Gouging: Profits Soar While Consumers Suffer
Rep. Jason Dawkins March 11, 2025 | 3:35 PM
By State Rep. Jason Dawkins, D-Phila.
As food prices continue to climb at an alarming rate, many of the largest supermarket chains are simultaneously posting record-breaking revenues. At a time when working families in Philadelphia and across the nation are struggling to make ends meet, these corporations are cashing in on inflation, passing costs onto consumers, and exploiting the public’s basic need for food. To add insult to injury, shoppers are not only paying more for less -- thanks to the deceptive practice of shrinkflation -- but they’re also being forced to pay for grocery bags just to carry their overpriced essentials out the door. Enough is enough.
The reality is clear: supermarkets are profiting from necessity, not innovation. The cost of eggs, milk, bread, and other staples has skyrocketed far beyond reasonable inflationary adjustments. Yet, major food retailers continue to rake in historic profits. This is not the result of a natural supply chain issue -- it’s corporate greed in action, and it disproportionately affects low-income communities, especially here in Philadelphia.
A Policy-Driven Solution for Relief
As a state representative from Philadelphia, I refuse to stand by while families are price-gouged for necessities. That’s why I am pushing for a series of policy measures to combat these exploitative practices:
- Price-Gouging Oversight – Enforcing stricter regulations to prevent food retailers from using inflation as a cover for excessive price hikes. We must ensure transparency in corporate pricing structures to prevent unnecessary markups on essential goods.
- Shrinkflation Accountability – Holding companies accountable for deceptive practices that reduce package sizes while keeping prices the same -- or even raising them. Consumers should be informed when they are getting less for their money.
- Eliminating Bag Fees – Banning the unfair practice of charging customers for bags, especially when supermarkets are already making record profits. If these corporations can afford executive bonuses, they can afford to provide bags for paying customers.
As Labor & Industry Committee chairman in the PA House of Representatives, I am launching an oversight subcommittee to investigate trends, eliminate bag fees, and impose penalties for noncompliance.
Pennsylvania Farmers: A Homegrown Solution
One way to combat soaring grocery prices is by investing in Pennsylvania’s rich agricultural economy. Pennsylvania is home to over 52,000 farms, producing fresh and high-quality produce, dairy, and meat. Instead of relying on overpriced supermarket chains, we should be bolstering local farmer-to-consumer initiatives that bring fresh, affordable food directly to Philadelphians.
Expanding farmers' markets, incentivizing direct-to-consumer sales, and increasing funding for urban agriculture programs can help make fresh food more accessible while cutting out middlemen who drive up costs. Additionally, providing tax breaks and subsidies to small farmers will ensure they remain competitive and able to supply affordable produce to residents.
Putting the People First
Philadelphia’s working families should not have to choose between putting food on the table and paying rent. We must put people over profits and fight for policies that rein in corporate greed while making food accessible and affordable for all.
I call on my fellow lawmakers and community leaders to stand with me in this fight. Grocery stores should serve the people -- not exploit them. By taking action now, we can ensure that every Philadelphian has access to fresh, fairly priced food without being nickel-and-dimed for the basic human right to eat.
It’s time to stop the grocery giants from robbing our communities and start building a system that works for the people of Philadelphia. Let’s get to work.
State Rep. Jason Dawkins represents parts of Philadelphia and is the Majority Chair of the Pennsylvania House Labor and Industry Committee.