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FTC Sues PepsiCo for Price Discrimination Favoring Walmart Under Robinson-Patman Act

Jan 17, 2025, 04:12 PM

The Federal Trade Commission (FTC) has filed a lawsuit against PepsiCo Inc. under the Robinson-Patman Act, a 1930s law that prohibits price discrimination against retailers. The FTC alleges that PepsiCo engaged in illegal price discrimination by providing Walmart, identified as the favored large retailer, with better pricing and promotional payments, while disadvantaging other competing retailers. This practice, according to the FTC, has led to higher prices for consumers and put smaller competitors at a disadvantage. The lawsuit was filed in the U.S. District Court for the Southern District of New York, with the FTC seeking a permanent injunction and other equitable relief. The vote to authorize the lawsuit was 3-2, with Commissioners Melissa Holyoak and Andrew N. Ferguson dissenting. This action marks the second Robinson-Patman Act suit filed by the FTC during Lina Khan's tenure.