FTC Sues PepsiCo for Alleged Price Discrimination

PepsiCo is facing a lawsuit from the Federal Trade Commission (FTC), which accuses the company of engaging in illegal price discrimination by providing unfair pricing advantages to a major retailer, likely Walmart, while raising prices for competing retailers. The FTC argues that such practices violate the Robinson-Patman Act, designed to protect competition by prohibiting sellers from offering different prices to different buyers for the same product. PepsiCo has vigorously denied the allegations, asserting that its pricing practices align with industry norms and that the lawsuit is incorrect both factually and legally. The negative sentiment surrounding the lawsuit has affected PepsiCo's stock performance, which has seen a decline of about 14% in the past three months. Despite these challenges, PepsiCo's CEO expressed confidence in the company's role in the food industry transformation, particularly regarding health and safety standards. The company is also moving forward with recent acquisitions, including Garza Food Ventures.