Accusing PepsiCo, Inc. of engaging in unlawful price discrimination by providing an unidentified ‘large, big box’ retailer with unfair pricing benefits while hiking prices for others, the Federal Trade Commission filed a case against the firm on Friday.
According to the FTC, Pepsi has been unfairly favoring one big retailer over others for years by giving its consumers incentives like promotional payments while denying its rivals the same advantages.
The complaint claims that Pepsi’s unfair business practices violate the Robinson-Patman Act by denying other businesses a fair chance to compete and by raising prices for American families.
‘It tilts the playing field against small firms and ultimately inflates prices for American consumers when companies like Pepsi give massive retailers a leg up,’ said FTC Chair Lina M. Khan in a statement. ‘The FTC’s action will help ensure all grocers and other businesses—no matter the size—can get a fair shake and compete on the merits of their skill, efficiency, and talent.’
It is against the Robinson-Patman Act for sellers to discriminate on the basis of price by offering financial incentives.
The lawsuit is one month after the commission filed a lawsuit against Southern Glazer’s, the biggest wine and spirits distributor in the United States, in December 2024, claiming that the company had broken the same statute.
According to an FTC statement, a significant amount of the alleged offenses were redacted because Pepsi and the accused ‘preferred’ shop were legally protected.
According to the commission, it is currently working to have the censored material removed.
‘Until Pepsi’s conduct is remedied, Pepsi’s anticompetitive actions will continue to create an uneven playing field by denying competing retailers, which include family-owned neighborhood grocery stores, the chance to fairly compete against Pepsi’s favored large, big box retailer customer,’ the statement reads.
Fox News Digital was informed that Walmart, who other media sites claimed was the preferred rival, did not want to comment on the lawsuit.
Fox News Digital reached out to Pepsi for comment, but the company did not immediately reply.
