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Committee rejects bill aimed at curbing secret supplier discounts that hurt small grocers
Summary
HB 800 would have limited supplier discounts that create wholesale price disparities between large chains and local grocers; proponents linked the practice to food deserts while retailers warned of unintended consequences. The measure failed on committee roll call.
Representative Knox sponsored HB 800 to prohibit supplier practices that give secret preferential wholesale deals to large buyers and thereby disadvantage independent grocers in food‑desert areas. Supporters including the New Orleans Food Policy Council and a parent advocate argued the bill would restore competition and help low‑income communities by reducing hidden wholesale discounts that keep prices higher at small stores.
Industry witnesses and realtors cautioned about unintended consequences for complex transactions (leases, telecommunications, operating‑expense pass‑throughs) and asked for targeted carve‑outs. After extended discussion the committee held a roll call; the bill failed in committee 7–9. Supporters said they will continue discussions with stakeholders and the author to address carve‑outs for commercial leases and other specialized contracts.
