Government Relations

By: Leslie Sarasin, President and CEO, Food Marketing Institute

Occasionally, an event takes place that carries a larger meaning than the mere sum of its parts. It becomes emblematic of something grander and looms as a symbol, or as Petula Clark sang back in the 80’s, it becomes a “Sign of the Times.” It may be a singular event, but it speaks of a multifaceted, multi-layered condition.

This week, more than 250 grocery and supermarket executives came to the nation’s capital to participate in the Food Marketing Institute and National Grocers Association and Food Industry Association Executives “Day in Washington." The number of food retailers who saw fit to leave their businesses, travel to D.C. and participate in meetings with lawmakers in order to advocate on behalf of industry concerns comprise the largest contingent we’ve had in recent years. The number is significant, but I think the number is more than mere happenstance. The magnitude of the issues to be discussed with legislators was significant, including legislation that would bring needed common sense clarification to the application of chain restaurant menu labeling requirements for supermarkets; legislation urging creation of a national labeling standard for food products containing GMO ingredients; efforts seeking governmental support to mitigate fraudulent transactions resulting in unprecedented and large chargebacks on chip cards to food retailers; and the recognition that changes to the overtime rule will have significant impact on associates, scheduling as well as budgets. These, too, carry a larger meaning.

The higher number attracted to participate in this year’s Day in Washington speaks of the enormity of the issues being addressed, but it also communicates volumes about the mounting frustration that retailers experience in the face of daunting regulatory challenges as well as the challenges of dealing with the failure of federal government to function effectively, which means that state decisions carry national level implications. 

For months now, FMI and the supermarket industry have been asking for clarification that would make the U.S. Food and Drug Administration’s chain restaurant menu labeling regulations more workable in a grocery store setting. Our industry supports enactment of the Common Sense Nutrition Disclosure Act of 2015 (H.R. 2017/S. 2217), which brings some common sense Interpretation to a law not originally intended for a supermarket setting. The House version of this bill passed in February with a 266-144 bipartisan vote and the industry will be campaigning for bipartisan momentum in the Senate. We need the Federal Government to act on this necessary legislation. 

On the GMO front, our fly-in participants will be advocating support of legislation calling for creation of a uniform national standard for labeling products containing GMO ingredients that preempts differing state laws. The Biotechnology Labeling Solutions Act was approved by the Senate Agriculture Committee on March 1st by a bipartisan vote of 14-6, but then failed on the Senate floor 48-49 on March 16. We will be urging a bi-partisan compromise at a time when partisan politics is at an all-time high. Again, we need the federal government to take action. 

Grocers will also be on Capitol Hill addressing issues associated with the EMV transition to Chip-Enabled Cards. Primarily, we seek relief from the criminal element attempting to capitalize on the liability shift that occurred in October 2015, and the delay of some of our vendors to be ready for chip cards, even though we have the readers waiting in the store. Food retailers are negatively impacted by unprecedented chargebacks on alleged fraudulent chip card transactions, often compounded by several large charges on one single card. Grocers need more information from the issuer and card-network-fraud-monitoring divisions allowing these transactions to occur. For this to happen, we need the federal government to help identify the thugs and highlight their fraud schemes.

When you look at the list of issues that could also be on the fly-in docket, but are getting out-prioritized by these, you recognize how very significant these issues are. Each one is crucial. The fact that we are, of necessity, advocating for all of them this year is a sign of the times. It is indicative of the frustration with government that is being registered across the nation in the presidential campaigns. It is an outward manifestation of the dissatisfaction citizens are recording in their low approval ratings of Congress. The heavy agenda for the Day in Washington is truly a sign of the times. The good news is the food retail industry is responding actively and positively. We are showing up en masse, to hold meetings, have conversations and seek to sway those in positions of trust to move beyond the barriers thwarting progress and to take action in a way that helps the industry do its job of feeding families and enriching lives.