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

Jan 17, 2025, 06:18 PM

The Federal Trade Commission (FTC) has filed a lawsuit against PepsiCo in the Southern District of New York, alleging that the company engaged in illegal price discrimination by providing Walmart with preferential pricing and promotional payments, which disadvantaged smaller retailers. The lawsuit, filed under the Robinson-Patman Act, claims that PepsiCo's actions have led to higher prices for consumers unless they shop at Walmart. The FTC's action was approved by a 3-2 vote, with the two Republican commissioners dissenting. Outgoing FTC Chair Lina Khan stated that the lawsuit aims to ensure fair competition for all businesses regardless of size. PepsiCo has strongly disputed the allegations, asserting that its practices align with industry norms and denying any favoritism towards certain customers. A substantial portion of the alleged violations are currently redacted in the complaint.