Court ruling or official statement from the U.S. District Court for the Southern District of New York

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

Jan 17, 2025, 04:32 PM

The Federal Trade Commission (FTC) has filed a lawsuit against PepsiCo, Inc., the second-largest food company in the world, alleging that the company engaged in illegal price discrimination under the Robinson-Patman Act. The FTC claims that PepsiCo provided Walmart, a large big box retailer, with preferential pricing and promotional payments, which disadvantaged smaller competitors and led to higher prices for consumers. The lawsuit, filed in the U.S. District Court for the Southern District of New York, marks the FTC's latest enforcement action under the Robinson-Patman Act, following a similar case against Southern Glazer's in December 2024. FTC Chair Lina M. Khan stated that such practices tilt the playing field against small businesses and inflate prices for American consumers. PepsiCo has denied the allegations, asserting that its practices align with industry norms and that it does not favor certain customers. The case was authorized by a 3-2 vote, with Commissioners Melissa Holyoak and Andrew N. Ferguson dissenting.