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FTC Sues PepsiCo for Price Discrimination Favoring Walmart, Says Lina M. Khan

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 has engaged in illegal price discrimination by providing preferential pricing and promotional payments to Walmart, a large big box retailer, while raising prices for other competing retailers. This action, according to the FTC, has disadvantaged smaller retailers and led to higher prices for consumers. The lawsuit was filed in the U.S. District Court for the Southern District of New York, marking the second such case under the Robinson-Patman Act during FTC Chair Lina M. Khan's tenure. The FTC's complaint suggests that PepsiCo's practices have created an uneven playing field, denying competing retailers the ability to fairly compete.