Kamala Harris

Molly Butler / Media Matters

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Right-wing media mischaracterize a Harris economic plan as “price controls,” deny existence of price gouging, and call her a communist

Harris’ plan cites existing state laws that target price gouging and does not mention setting price controls

Written by Zachary Pleat

Published

On August 15, Democratic presidential nominee Vice President Kamala Harris began outlining her economic agenda, which includes fighting excessive prices by enacting a federal ban on price gouging. 

Most states already have some kind of law banning price gouging in at least some circumstances, but Harris’ new proposal would create the first ever federal ban on price gouging on groceries and empower the Federal Trade Commission to enforce these new consumer protections. 

Yet Fox News and others in the media reacted by falsely mischaracterizing Harris’ proposal as setting price controls, denying that price gouging exists in the food industry, and ranting about communism.

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  • Harris’ plan specifically mentions anti-monopoly actions and enhanced authority for the FTC and state attorneys general to combat price fixing, not price controls

    • Bloomberg White House reporter Josh Wingrove posted a Harris campaign email previewing her plan that makes no mention of price controls. What the announcement did mention was “authority for the FTC and state attorneys general to investigate and impose harsh penalties” on corporations engaging in price gouging, “resources for the federal government to identify and take on price-fixing and other anti-competitive practices” in the food industry, and support for small businesses to break into the food industry to take on monopolies. [Twitter/X, 8/15/24]
    • Washington Post economics reporter Jeff Stein posted another Harris campaign announcement that cited state price gouging laws and laid out plans to grant more authority to the FTC and state attorneys general and increase competition in the food industry. There was no mention of price controls. [Twitter/X, 8/15/24]
    • In a press release, the Harris-Walz campaign detailed its price gouging initiative to empower regulators and state attorneys general and to tackle predatory price gouging. In an August 16 press release fully detailing the Harris-Walz campaign’s broader economic agenda, the campaign reiterated that, if elected, Harris will work to “advance the first-ever federal ban on price gouging on food and groceries,” stipulating that these policies would be aimed at “big corporations” that “unfairly exploit consumers” and that the regulatory and legal authority to investigate and enforce the new anti-price gouging rules would rest with “the FTC and state attorneys general.” [Harris-Walz campaign press release, 8/16/24 via Popular Information]
    • Axios: Price controls are “just not how anti-price gouging policies work in the U.S.” Axios markets correspondent Emily Peck wrote that “critics are conflating the idea with Soviet-style price controls, and calling the plan ‘Kamunism.’” She explained that there’s been “wild speculation about what the plan could mean, including opinion pieces expressing fears that retailers won't be able to, say, set the price of a gallon of milk, and that it would lead to widespread shortages, black markets and hoarding,” but that “that's just not how anti-price gouging policies work in the U.S.,” pointing to a federal draft bill that “largely mirrors state laws” but is limited to larger companies “with at least $100 million in revenue.” [Axios, 8/20/24]
    • Nobel prize-winning economist Paul Krugman: “Kind of amazing how much of the commentariat went into a tizzy over Harris calling for price controls, when she did no such thing.” [Twitter/X, 8/18/24]
    • Economic writer Matthew Yglesias: “After all the tweets, I'm pretty sure Harris did not in fact propose price controls on groceries — just kind of vaguely said that antitrust enforcement is good (it is good).” [Twitter/X, 8/16/24]

  • Right-wing media falsely mischaracterized Harris’ proposal as setting price controls

    • Multiple Fox News headlines claimed Harris’ proposal was a “price control” plan. An August 16 Fox News article critical of Harris was headlined “Dave Ramsey explains why Kamala Harris' price control plan will not curb inflation: ‘It's not sustainable.’” Several Fox headlines on August 17 labeled Harris’ plan as a “price control plan” or “price control proposal,” and another parroted Donald Trump’s accusation that Harris was pursuing “Soviet style” policies. [Fox News, 8/16/24, 8/17/24, 8/17/24, 8/17/24]
    • National Review: “Kamala Harris’s Price-Control Plan Is an Attempt to Rewrite History.” National Review Senior Editor Charles C.W. Cooke quoted from a New York Times article describing earlier Biden administration efforts “to target corporate consolidation and price gouging, including attempts to stoke more competition in the meat industry and the Federal Trade Commission’s lawsuit this year that seeks to block the merger of two large grocery retailers, Kroger and Albertsons.” None of that constitutes a “price-control plan.” [National Review, 8/15/24]
    • Washington Examiner: “Kamala Harris’s inflation ‘solution’: Nixon’s price controls and Trump’s tax policy.” Washington Examiner commentary writer Tiana Lowe Doescher claimed that Harris is “taking the tried and failed doctrine of price controls” from former President Richard Nixon. [Washington Examiner, 8/16/24]
    • Washington Free Beacon: “Kamala Harris Finally Has an Economic Plan: Price Controls on Food.” The Free Beacon referred to the plan as a “price control scheme.” [Washington Free Beacon, 8/15/24]
    • Fox host Dana Perino cited The Washington Post’s editorial board referring to Harris’ plan as a “gimmick” and called her plan “price controls.” The Post editorial likened Harris’ plan to “President Richard M. Nixon’s failed price controls from the 1970s.” [Fox News, America’s Newsroom, 8/19/24; The Washington Post, 8/16/24]

  • An FTC investigation revealed price gouging by major supermarket chains, and there have been many cases of price fixing in the food industry

    • In March, the FTC released a report on grocery supply chain disruptions during the pandemic, which found that some supermarket corporations “seem to have used rising costs as an opportunity to further raise prices to increase their profits, which remain elevated today.” FTC chair Lina Khan said, “The FTC’s report examining U.S. grocery supply chains finds that dominant firms used this moment to come out ahead at the expense of their competitors and the communities they serve.” [Federal Trade Commission, 3/21/24, 3/21/24]
    • The Washington Post stated in early February that “the White House Council of Economic Advisers also found in a new report that grocery store profit margins remain higher than their pre-pandemic levels.” [The Washington Post, 2/2/24]
    • Former Labor Secretary Robert Reich: Consolidation in the food industry allows major corporations “to coordinate prices instead of compete on the basis of lower prices.” Reich explained: “Food prices remain high because there’s little to no competition across the entire food supply chain. This has allowed big corporations to engage in a price gouging free-for-all.” [Robert Reich, 8/13/24]
    • Reuters: Meat-packing company JBS “agreed to pay $25 million to commercial beef purchasers that accused the meat-packing company of conspiring with industry rivals to restrict market supply in order to keep prices artificially high.” [Reuters, 4/17/23]
    • Large pork corporations have paid multiple settlements totaling nearly $200 million for price-fixing schemes in recent years. Meat + Poultry magazine reported in July that “in the last few years, JBS USA and Smithfield Foods, other large pork processing companies in the United States, have reached settlements on other direct-purchaser pork pricing cases. In 2022, JBS USA reached a $20 million settlement, and Smithfield reached an $83 million settlement. The next year, Smithfield agreed to a $75 million settlement.” The Minnesota Star Tribune reported in April that “Hormel Foods will pay more than $11 million to settle class-action lawsuits alleging the company worked with other pork producers to illegally fix prices and overcharge customers.” [Meat + Poultry, 7/9/24; The Minnesota Star Tribune, 4/11/24]
    • Reuters: Chicken suppliers have paid out at least $284 million in multiple price-fixing lawsuits. Reuters reported that “consumers, direct purchasers of chicken and commercial plaintiffs such as restaurants and grocery stores in the coordinated cases accused” large chicken suppliers “of conspiring for years to keep prices artificially high by curbing production and sharing nonpublic data about supply and demand.” Reuters reported that “among some of the food distributors’ earlier settlements, Tyson agreed in 2021 to pay $80 million to the direct purchaser plaintiffs. Pilgrim’s Pride that year settled for $75 million. In 2023, Koch resolved claims against it for $47.5 million, and House of Raeford Farms paid $27.5 million.” [Reuters, 3/1/24]
    • Tuna company StarKist settled a canned tuna price fixing lawsuit in June. StarKist previously pleaded guilty to “charges of colluding to fix the price of canned tuna from late 2011 to late 2013.” [Just Food, 6/27/24]
    • A federal jury ordered egg producers to pay over $17 million in an antitrust case over price fixing dating back to the 2000s. The Associated Press reported that “the jury found that the egg suppliers exported eggs abroad to reduce the overall supply in the domestic market, as well as limited the number of chickens through means including cage space, early slaughter and flock reduction” to artificially raise the price of eggs. [The Associated Press, 12/1/23]

  • Fox denied that price gouging even exists in the food industry

    • Fox business host Larry Kudlow claimed there is no evidence that corporations, especially food companies, engage in price gouging. Fox Business host Larry Kudlow criticized Harris’ then-upcoming speech, accusing her of “basically going to bash businesses” and claiming “there is no evidence of corporate price gouging.” Kudlow added: “The rate of return, the margins are very modest across the board. In fact, food price margins from grocery stores and food companies actually declined in July, and I don't know what they did in June. But that’s an old charge. It’s just what people on the left always blame, business.” [Fox News, America’s Newsroom, 8/14/24]
    • Fox & Friends co-host Brian Kilmeade said: “Their profit margin is so low. … Supermarkets are having trouble making ends meet. So they’re not the problem.” Kilmeade also defended these corporations, arguing that, “if Kamala Harris is going to run on, ‘I prosecuted corporations for price gouging,’” Republicans should defend corporations. [Fox News, Fox & Friends, 8/14/24]
    • Fox contributor Jason Chaffetz: “By the way, if you are in the grocery business, that is one of the tightest margin businesses that there is. Don't think that those are the people causing the problem.” [Fox News, America Reports, 8/15/24]
    • Fox & Friends co-host Ainsley Earhardt: “When she says my solution is to go after the price gougers — you’re going to go after grocery stores? Their margins are so low, they’re not making a lot of money.” Guest co-host Will Cain added: “The average margin for a business in America is 8.5%. That’s how much profit they’re making. The grocery business is making 1.2%.” [Fox News, Fox & Friends, 8/16/24]

  • Most states have some kind of law banning price gouging, and Republicans have taken legal action against price gouging

    • The National Conference of State Legislatures has documented that “Thirty-seven states, Guam, Puerto Rico, the U.S. Virgin Islands and the District of Columbia have statutes or regulations that defining price gouging during a time of disaster or emergency.” The NCSL’s explanation continued: “In most states, price gouging is set as a violation of unfair or deceptive trade practices law. Most of these laws provide for civil penalties, as enforced by the state attorney general, while some state laws also enforce criminal penalties for price gouging violations.” [National Conference of State Legislatures, 3/10/22]
    • Former President Donald Trump used executive authority to ban price gouging of medical supplies during the COVID-19 pandemic. In March 2020, Reuters reported: “President Donald Trump signed an executive order on Monday to prevent hoarding and price gouging of crucial medical supplies needed to fight the deadly coronavirus, while Attorney General William Barr announced that the Justice Department has already launched hoarding investigations to carry out the order.” [Reuters, 3/24/20]
    • GOP-led states, including Texas and Florida, have sued corporations for price gouging in recent years, showing that such actions are common. Opposition researcher Tyson Brody made several posts on X (formerly Twitter) showing press releases from Texas Attorney General Ken Paxton announcing price gouging lawsuits, including against a food company. He also posted a news headline about Florida Attorney General Ashley Moody warning against price gouging during the recent hurricane season. [Twitter/X, 8/16/24, 8/16/24, 8/16/24, 8/16/24]
    • Multiple GOP senators asked the Justice Department “to investigate continued allegations of (“meat packer”) price fixing within the cattle market” in 2020. In their letter, Sens. Michael Rounds (R-SD), Kevin Cramer (R-ND), Steve Daines (R-MT), and John Hoeven (R-ND) cited the fact that “the four largest meat packing companies control approximately 80 percent of the beef processing in the United States,” and asked, “Does this concentration of market power amongst the four large packers create an unfair oligopoly in contradiction with U.S. Antitrust law?” The senators also cited a 20% price increase for “processed boxed beef” to show their concern. [United States Senate, 3/19/20]

  • Right-wing media called Harris’ plan “communism” and other such nonsense

    • Fox contributor Jason Chaffetz: “Her first new policy to implement is what the communists would do, what socialists would do.” Chaffetz continued: “And that is the government’s going to come in and solve this. The government is going to dictate what prices are going to be. Is there anything more scary to the entrepreneurs in the business community than the government controlling your prices? Her solution for inflation and fixing the economy is for the government to take over? I don't think this is going to fly. I don't think it's going to come over very well. It’s never worked. That's not who we are as a country.” [Fox News, America Reports, 8/15/24]
    • Fox contributor Sean Duffy: This is a “set of commie policies. … They want to go old school socialism, fix prices.” Fox Business anchor Dagen McDowell said, “You will have bare shelves, so ‘Make America the Soviet Union’ should be the slogan there.” [Fox News, The Faulkner Focus, 8/15/24]
    • Fox guest Kevin O’Leary: “It's been tried before in countries like the Soviet Union, North Korea, Cuba. Doesn't work. So obviously that's not going to happen.” [Fox News, The Story, 8/15/24]
    • Fox host Sean Hannity: “The best Kamala could come up with is, what? Marxism, socialism, statism — I don't know, basically communism.” Hannity also compared Harris’ plan to the Soviet Union. [Fox News, Hannity, 8/15/24]
    • Fox host Rachel Campos-Duffy: “The plan apparently involves a Soviet-style price control to stop inflation. … Socialism is never the answer.” She added: “This is always the plan of every tin-pot communist dictator. After they destroy the economy, the next step is always price control.” [Fox News, Jesse Watters Primetime, 8/15/24]
    • Fox host Laura Ingraham portrayed Harris as “Comrade Kamala” during a monologue bashing her policy proposal. [Fox News, The Ingraham Angle, 8/16/24]
    • Turning Point USA founder Charlie Kirk: “Communism is not coming to America. It’s already here.” [Twitter/X, 8/15/24]
    • Conspiracy theorist Alex Jones: “This has always been the plan. You will eat the bugs! Kamala Harris’ Proposed Price Controls May Lead to ‘Communism, Mass Starvation, End of America.’” [Twitter/X, 8/18/24]
    • A Fox report cited Washington Post opinion columnist Catherine Rampell, who falsely claimed that Harris proposed price controls that make her appear “communist.” Rampell’s column is titled, “When your opponent calls you ‘communist,’ maybe don’t propose price controls.” [Fox News, Your World with Neil Cavuto, 8/16/24; The Washington Post, 8/15/24]