FTC Unanimously Dismisses Biden-Era Price Discrimination Suit Against PepsiCo

The Federal Trade Commission unanimously voted to dismiss a price discrimination lawsuit against PepsiCo that was filed during the closing days of the Biden administration. The suit, based on the Robinson-Patman Act, alleged that PepsiCo offered preferential pricing to large retailers over smaller independent stores, a claim that had not been pursued by the FTC since 2000. FTC Chairman Andrew Ferguson criticized the lawsuit as politically motivated and a misuse of agency resources, emphasizing that the FTC should focus on protecting consumers and ensuring fair competition. The dismissal occurred amid a shift in the FTC's leadership to a Republican majority after President Trump removed two Democratic commissioners. Despite the dropped case, scrutiny over corporate pricing practices continues in other contexts, including concerns raised by Democrats on Capitol Hill and public criticism of retailers like Walmart. PepsiCo has consistently denied any wrongdoing, stating its pricing aligns with industry norms and does not favor certain customers.