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State Closes Probe of Milk Price-Fixing

Times Staff and Wire Reports

Major California supermarket chains, including Lucky and Safeway, did not conspire to fix milk prices, state Atty. Gen. Dan Lungren has concluded after an eight-month investigation. The study “found there is no evidence of an agreement to establish prices among the supermarkets,” Lungren said in a statement. A study by Consumers Union in September found that prices for a gallon of milk in California supermarkets were as high as $3.73, compared with prices as low as $2.39 in small neighborhood stores. The study prompted the attorney general’s office to launch its investigation, which Lungren said is now closed.

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