FTC Drops PepsiCo Price Discrimination Lawsuit Over Walmart Favoritism

The U.S. Federal Trade Commission (FTC) has dismissed a lawsuit accusing PepsiCo of violating the Robinson-Patman Act by offering Walmart preferential pricing, a case initiated in the final days of the Biden administration under Chair Lina Khan. The lawsuit alleged that PepsiCo's pricing practices disadvantaged smaller retailers by providing Walmart with better deals, invoking a rarely used 1936 antitrust law aimed at preventing price discrimination. Current FTC Chair Andrew Ferguson criticized the case as a politically motivated misuse of resources, reflecting a shift in enforcement priorities under the new administration. Khan and other Democrats contested the dismissal, warning it could harm consumer protection and enable large retailers to increase prices. The case's closure underscores ongoing tensions between regulatory approaches to corporate consolidation and market-driven pricing strategies, particularly amid concerns about inflation and retail consolidation. PepsiCo denied any wrongdoing, emphasizing its commitment to fair and non-discriminatory pricing, while Walmart has not publicly commented on the matter.