FTC Sues PepsiCo Over Alleged Price Discrimination Favoring Walmart

The Federal Trade Commission (FTC) has filed a lawsuit against PepsiCo, alleging illegal price discrimination that gave a large retailer unfair advantages over smaller businesses, CNN reported.

PepsiCo's practice allegedly disadvantaged family-owned grocers, local convenience stores, and even larger chains. I Photo: PepsiCo Facebook

The complaint claims PepsiCo provided promotional payments and advertising benefits to the unnamed retailer—reported by a source to be Walmart—that were unavailable to competitors.

This practice allegedly disadvantaged family-owned grocers, local convenience stores, and even larger chains.

FTC Chairperson Lina Khan stated, “When firms like Pepsi give massive retailers a leg up, it tilts the playing field against small firms and ultimately inflates prices for American consumers.”

The case invokes the Robinson-Patman Act of 1936, which prohibits pricing practices that favor large customers at the expense of smaller competitors. The FTC voted 3-2 to pursue the case, with Republican commissioners dissenting. The lawsuit was filed in the U.S. District Court for the Southern District of New York.