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Rhode Island bans grocery restrictive covenants to boost supermarket access

The state aims to prevent major chains from blocking rival grocers from occupying vacated properties, though existing restrictions remain active.

Updated Aug 28, 2026 · 15:18 UTC1 reports

The short version

  • Rhode Island has become the second US state to ban anti-competitive restrictive covenants, which supermarket chains use to block rivals from leasing vacated retail spaces.
  • The city of Woonsocket, Rhode Island, has been left with only one full-service supermarket for 45,000 residents due in part to multiple restrictive covenants.
  • Because the new legislation is not retroactive, existing covenants will remain in effect until they naturally expire, and independent grocers still face high startup barriers.

Key facts

  • Rhode Island passed legislation in July banning supermarket restrictive covenants as part of Lieutenant Governor Sabina Matos's Fair Price Grocery Agenda.[The Guardian]
  • Woonsocket, Rhode Island, has a population of 45,000 residents, 37% of whom are food insecure, and is served by only one full-service supermarket.[The Guardian]
  • Large grocery chains like Stop & Shop and Walmart use restrictive covenants in deeds or leases to prevent food sales in vacated spaces, sometimes for decades, to keep competitors out.[The Guardian]
  • Restrictive covenants have also been banned in Washington state, Chicago, Washington DC, Madison, Bellingham, and Seattle, while California's legislature has considered a ban.[The Guardian]
  • Four US senators have asked the Federal Trade Commission to evaluate its power to regulate or federally ban these agreements.[The Guardian]

What remains uncertain

  • The total number of active restrictive covenants across the country is unknown because uncovering them requires tedious searches through complex real estate and municipal databases.[The Guardian]
  • It remains uncertain how much the ban will improve food affordability, given high retrofitting costs for smaller, independent grocers and the lack of a retroactive clause in Rhode Island's law.[The Guardian]

Sources