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The Federal Trade Commission on Friday filed a lawsuit against PepsiCo, Inc., alleging the company engaged in illegal price discrimination by giving an unnamed “large, big box” retailer unfair pricing advantages, while raising prices for others.
The FTC alleges Pepsi has disadvantaged retailers for years, consistently favoring one large retailer by providing its customers advantages like promotional payments, while denying those benefits to its competitors.
Pepsi’s unfair practices have led to inflated prices for American families, while denying competing retailers the ability to fairly compete, violating the Robinson-Patman Act, according to the complaint.
The FTC is suing PepsiCo for allegedly favoring one “bix-box” retailer. (Kennedy Hayes/ Fox News)
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“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,” FTC Chair Lina M. Khan wrote 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.”
Under the Robinson-Patman Act, sellers are prohibited from using financial incentives to engage in price discrimination.
Pepsi is being sued by the FTC for allegedly violating the Robinson-Patman Act and providing advantages to one unnamed retailer. (Denise Truscello/Getty Images for LARAS / Getty Images)
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The case comes a month after the commission sued the largest U.S. distributor of wine and spirits, Southern Glazer’s, in December 2024 – alleging it violated the same law.
A substantial portion of the alleged violations were redacted, due to legal protection afforded to Pepsi and the alleged “preferred” retailer, according to a statement from the FTC.
Washington DC, Federal Trade Commission, building exterior and sign. (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images / Getty Images)
The commission said it is in the process of attempting to get the redacted information lifted.
“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,” according to the statement.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PEP | PEPSICO INC. | 148.25 | +1.71 | +1.17% |
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Pepsi and Walmart, who other outlets reported is the favored competitor, did not immediately respond to a request for comment from Fox News Digital.
