FTC Sues PepsiCo for Price Discrimination

The Federal Trade Commission (FTC) has filed a lawsuit against PepsiCo, accusing the company of illegal price discrimination by providing Walmart, a major retailer, with preferential pricing and promotional advantages. The lawsuit, filed in the Southern District of New York, alleges this practice violates the Robinson-Patman Act, a 1936 law that prohibits price discrimination favoring large retailers over smaller competitors. PepsiCo, denying the allegations, claims its practices align with industry norms and do not unfairly favor any customers. The largely redacted lawsuit aims to reveal how these practices have led to higher prices for other retailers and consumers. This case marks a revival of the Robinson-Patman Act enforcement, which had been dormant since the 1980s, highlighting the FTC's efforts under Chair Lina Khan to ensure fair competition. Walmart has not commented on the lawsuit, which has sparked discussions about both PepsiCo's and Walmart's market power.