Are Pet Food Distributors Price Fixing? – Truth about Pet Food

July 13, 2023 Kar-Bay-Inc

To protect the pet store, no names or locations will be provided.

Small independent pet food stores purchase the products they sell from distributors. Pet food distributors are typically big operations, having sole distribution rights in many parts of the US. Pet food stores across the US often only have one option (one distributor) of who they can purchase pet foods/treats from for their store.

In other words, pet food distributors can yield a lot of control…should they choose to.

It appears that at least one pet food distributor IS choosing to control the prices of pet food in their distribution area.

Recently, a pet food store was visited by a representative from their distributor. The distributor representative was gruff with the pet food store – bullying type behavior. The distributor representative questioned the current pricing of pet foods in this store and INSISTED that this store raise their prices immediately. The pet food distributor INSISTED that this pet food store mark-up all products 40%.

The distributor directly told the pet food store if they did not comply with the 40% markup they would “rescind their account” (stop selling the pet food store products, putting them out of business).

Price Fixing.

The Federal Trade Commission defines price fixing as: “Price fixing is an agreement (written, verbal, or inferred from conduct) among competitors to raise, lower, maintain, or stabilize prices or price levels. Generally, the antitrust laws require that each company establish prices and other competitive terms on its own, without agreeing with a competitor.”

And this is a serious offense. “Price fixing is a major concern of government antitrust enforcement. Individuals and companies that knowingly enter price-fixing agreements are routinely investigated by the FBI and other federal law enforcement agencies and can be criminally prosecuted. Potential penalties include lengthy terms of imprisonment (up to ten years) and large fines (up to $1 million for individuals, $100 million for companies, or twice the gain or loss from the offense).”

This particular pet food distributor is bullying small stores, controlling the price of pet foods. When small businesses try to help pet owners and lower prices – the distributor is stopping them – threatening their livelihood if they don’t comply with the demanded price hike.

So, when you walk into your local pet food store, and you see the prices of your favorite pet foods keep growing higher and higher…it might be a less than ethical pet food distributor forcing the price hikes. It might be a less than ethical pet food distributor forcing price fixing.

And this pet food store…when they complained about the forced price hikes, the distributor cancelled their account. We (truthaboutpetfood.com) reported this pet food distributor to the Antitrust Division of the Justice Department. Here’s hoping the guilty parties are properly investigated and held accountable for their price fixing actions.

Wishing you and your pet(s) the best,

Susan Thixton
Pet Food Safety Advocate
Author Buyer Beware, Co-Author Dinner PAWsible
TruthaboutPetFood.com
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