FTC Sues Pepsi for Price Discrimination Against Retailers

The U.S. Federal Trade Commission (FTC) has filed a lawsuit against PepsiCo, alleging the company engaged in illegal price discrimination by offering preferential pricing to Walmart, disadvantaging smaller retailers and inflating consumer prices. The lawsuit claims PepsiCo violated the Robinson-Patman Act by providing promotional payments to Walmart while neglecting other grocery chains and independent stores, a practice that could lead to higher prices for consumers. FTC Chair Lina Khan emphasized the importance of ensuring fair competition for all retailers, regardless of size. PepsiCo has strongly denied the allegations, criticizing the partisan nature of the lawsuit, while Walmart has not publicly commented. This lawsuit is part of a broader FTC initiative to enforce the Robinson-Patman Act, which has seen renewed scrutiny in recent months. Analysts are observing the situation closely, as it reflects ongoing tensions in the consumer goods sector.