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The Federal Trade Commission on Friday filed suit against PepsiCo, Inc.alleging that the company engaged in illegal price discrimination by giving an unnamed “big, big box” retailer unfair pricing advantages while raising prices for others.
FTC alleges that Pepsi has put retailers at a disadvantage for years, consistently favoring one major retailer by providing its customers with benefits such as promotional payments, while denying those benefits to its competitors.
Pepsi’s unfair practices led to inflated prices for American families, denying competing retailers the ability to compete fairly, violating Robinson-Patman lawthe complaint states.
The FTC is suing PepsiCo for allegedly favoring one “bix-box” marketer. (Kennedy Hayes/Fox News)
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“When companies like Pepsi give to giant retailers, it tilts the playing field against small companies and ultimately inflates prices for American consumers,” FTC Chairwoman Lina M. Khan wrote in a statement. “The FTC’s action will help ensure that all grocers and other businesses—regardless of size—can receive fair support and compete on the merits of their skills, efficiency and talent. “
Under the Robinson-Patman Act, sellers are prohibited from using financial incentives to price discriminate.
Pepsi was sued by the FTC for allegedly violating the Robinson-Patman Act and favoring an unnamed marketer. (Denise Truscello/Getty Images for LARAS/Getty Images)
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The case comes a month after the commission sued America’s largest wine and spirits distributor, Southern Glazer’s, in December 2024 – alleging it violated the same law.
A significant portion of the alleged violations have been redacted, due to legal protections afforded to Pepsi and the alleged “preferred” marketer, according to the FTC’s statement.
Washington DC, Federal Trade Commission, building exterior and sign. (Photo by Jeffrey Greenberg/Universal Images Group via Getty Images/Getty Images)
The commission said it is in the process of trying to remove the redacted information.
“Until Pepsi’s behavior improves, Pepsi’s anti-competitive actions will continue to create an uneven playing field by denying competing retailers, which include family-owned neighborhood stores, the opportunity to compete fairly against Pepsi’s favored big-box retail customers,” the statement said.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ZEST | PEPSICO INC. | 148.25 | +1.71 |
+1.17% |
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Walmart, which has been reported by other outlets as a favored competitor, told Fox News Digital it would not comment on the lawsuit.
Pepsi did not immediately respond to Fox News Digital’s request for comment.
