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“Locked In, Priced Out”: Markups and Kickbacks in Prison Commissaries

Drawing from a research database of commissary pricing and markups culled from 26 state prison systems, a report published by The Appeal on April 17, 2024, found commissary prices “up to five times higher than in the community,” with markups reaching 600%.

To supplement paltry and unappetizing chow hall meals, prisoners use commissaries that typically stock a variety of snacks, candy and soft drinks, as well as staples such as peanut butter and condiments. Other common food items include meat and fish pouches; tuna and mackerel are especially popular. But in Tennessee prisons, a serving of roast beef costs $7.60, while a pouch of seasoned pork is almost $8.00. The most popular commissary food, ramen soup, illustrates how widely prices may vary, from as little as $.42 for a serving in Tennessee’s prison system up to $1.06 in the Florida Department of Corrections (DOC). Outside of prison, ramen is $.30 or less when bought in bulk.

“Some of the highest-priced ramen in the country was sold at commissaries run by Keefe Group, which is controlled by the private equity firm HIG Capital,” the report noted.

Pricy Personal Necessities

While prison systems supply free hygiene items to indigent prisoners, quality is often poor. Prisoners who want lotion, conditioner, better soap and shampoo or non-generic deodorant and toothpaste must buy it.

They also have to purchase over-the-counter medications and other health-related items. In the Tennessee DOC, generic Prilosec, used to treat severe gastric reflux, is sold in commissaries for around $8.00. Fixodent denture adhesive costs an Idaho prisoner $12.28. Reading glasses run over $15 in Vermont prisons—“about 5 times the price a shopper would find at Walgreens,” The Appeal noted.

In lockups without air conditioning, personal fans are more necessity than luxury—if prisoners can afford them. At Delaware’s Sussex Correctional Institution, an 8-inch plastic fan costs nearly $40. A similar fan in Mississippi is $29.95, while in Indiana it’s around $33.

Televisions can be costly, too. In the Tennessee DOC, a 15” LCD TV runs $179.95 to $224.95, plus a $5 “recycling fee.” That doesn’t include the cost of a remote, remote battery, coax cable or digital antenna. Tennessee contracts with California-based Union Supply Group, Inc., to provide commissary and property items.

Religious Price-Gouging

Some prison commissaries sell religious items, which tend to be more expensive for Muslim prisoners, The Appeal found. For example, a Christmas card in Virginia prisons cost $.80 while a Ramadan card was $2.33. In the Connecticut DOC, a Bible sold for $4.55, while the Noble Quran was $25.99. Tennessee’s prison system sells a prayer rug to Muslim prisoners for $17.95, but a rag floor rug is less than $6.00.

Inflated commissary prices are problematic for several reasons. First, prisoners are paid slave wages—from $.14 to $.63 per hour for most institutional jobs, according to a 2017 report by the non-profit, non-partisan Prison Policy Initiative (PPI). In Tennessee where most prison jobs pay $.17 to $.50 per hour—which hasn’t changed in over 30 years—it takes a prisoner earning the lowest pay rate three hours of work to afford a single pack of ramen.

As a result, family members often send money to their imprisoned loved ones so they can make commissary purchases. “Incarcerated people are using their hard-earned money and their family’s hard-earned money to buy things to help them survive,” stated PPI’s Wanda Bertram.

Markups and Kickbacks

Commissary prices are inflated by high markups, often because prison systems receive kickbacks from for-profit commissary vendors. The Florida DOC’s $175 million, five-year contract with Keefe Group includes a 35.6% “commission” kickback on marked-up commissary items. Kentucky’s prison system gets a 16% kickback under its contract with Union Supply Group.

The resulting markups on commissary items can be significant. In Georgia prisons, peanut butter was marked up over 70%. In Missouri, the price of ramen was inflated by more than 65%. The Arkansas DOC marks up all commissary items 40% to 50%. Until recently markups in the California Department of Correction and Rehabilitation (CDCR) ranged from 63% to 200%.

On top of that, sales tax adds over 9% in Tennessee. Iowa prisons add a 6% “Pay for Stay” fee to most commissary items. The Alaska DOC adds a 3% surcharge to many items that feeds an Inmate Welfare Fund. In Tennessee, Union Supply charges prisoners’ families a fee of around $6.00 each time they make an online payment for commissary or personal property items.

“Whether it is a private, external contractor or a state-run contractor, there is still a profit model built in,” explained Priya Sarathy Jones, deputy executive director of Fines and Fees Justice Center.

An Idaho DOC spokesperson said that commissary prices were “routinely” checked against convenience store prices for similar items. But convenience stores have higher prices than other retailers because customers pay more for “convenience” shopping—something that doesn’t apply to prisoners.

There have been efforts to reduce prison commissary prices. There are no markups on “basic hygiene” or religious items in Wyoming prisons. In 2023, the Nevada DOC eliminated markups on hygiene purchases, too. The Michigan DOC did the same in July 2022, later reducing the markup on food to 14%. CDCR recently capped commissary markups at 35% until 2028. Yet those are exceptions and not the rule—particularly when commissaries are operated by for-profit companies that provide lucrative kickbacks to prison systems.  

Sources: The Appeal, Tenn. SWC-569, Union Supply

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