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Ace Hardware Faces Federal Lawsuit Alleging Nationwide Price-Fixing Scheme

By  |  May 10, 2026

Ace Hardware has been accused in a new federal lawsuit of orchestrating an illegal nationwide pricing scheme with thousands of affiliated stores, allegations that could affect millions of consumers across the United States.

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    The proposed class action, filed Thursday in federal court in Chicago, claims Ace Hardware and its member stores violated U.S. antitrust laws by coordinating retail prices and limiting where stores could operate, according to Reuters. The complaint alleges that pricing at Ace locations moved in close alignment with nearby stores, effectively eliminating price competition in local markets.

    An Illinois resident brought the lawsuit on behalf of more than 5 million consumers who have purchased goods from Ace stores since 2022, per Reuters. The complaint alleges the company’s retail network, made up of thousands of independently owned and operated stores, has evolved into what plaintiffs describe as an unlawful cartel.

    The lawsuit states that Ace has “abandoned its commitment to local ownership, favoring ownership by multi-store chains, private equity firms, and Ace Hardware Corporation itself.” In addition to Ace Hardware, the complaint also names several company subsidiaries and business software provider Epicor as defendants.

    Lawyers representing the plaintiff said in a statement, “many hardworking Americans have been overcharged for essential home items for years. We want to put a stop to that.”

    According to Reuters, the lawsuit alleges Ace and Epicor use point-of-sale systems and internal reporting tools to gather detailed pricing and sales data from member stores. Plaintiffs claim that Ace, its members, and Epicor then used that competitively sensitive information to coordinate prices across locations.

    The complaint further alleges that the cooperative’s objective was to “boost margins and present a more consistent pricing image to consumers,” per Reuters. It also accuses Ace of restricting competition by preventing new stores from opening near existing locations.

    Ace Hardware, founded in 1924 and headquartered in Illinois, operates as a cooperative owned by local retail operators across the country. The company reported record revenue of $10 billion in 2025, according to Reuters.

    The lawsuit seeks unspecified monetary damages as well as a court order aimed at stopping the alleged pricing practices.

    The case is Sean Twomey v. Ace Hardware Corp et al, filed in the U.S. District Court for the Northern District of Illinois, case number 1:26-cv-05320.

    Attorneys listed for the plaintiff include Steven Molo and Eric Posner of MoloLamken, along with Stephen Tillery and David Walchak of Korein Tillery. No attorneys had yet appeared for the defendants as of the filing.

    Source: Reuters