Democrats Demand PepsiCo Explain Pricing Disparities Amid FTC Suit

Top-ranking Democrats, including Senators Elizabeth Warren and Cory Booker and Representative Jerry Nadler, have intensified scrutiny of PepsiCo's pricing practices amid ongoing inflation concerns. They sent a letter demanding PepsiCo explain alleged disparities in how it prices products between big-box retailers and smaller independent grocery stores, giving the company a May 25 deadline to respond. This inquiry follows a January 17 Federal Trade Commission lawsuit accusing PepsiCo of anti-competitive behavior by offering preferential pricing to a large retailer, violating the Robinson-Patman Act. The Democrats argue that such pricing strategies may harm small businesses and reduce consumer options, framing corporate greed and price discrimination as drivers of inflation. Republicans, contrastingly, focus on macroeconomic factors and foreign trade issues as causes of price increases. The FTC lawsuit and Democratic inquiry revive enforcement of an older anti-price discrimination law, highlighting a partisan divide on the causes and solutions to inflation.