The Federal Trade Commission (FTC) has filed a lawsuit against PepsiCo, alleging that the company engaged in illegal price discrimination with a large retailer, Walmart. According to the commission, Walmart received “unfair pricing advantages” that were not made available to other retailers.
PepsiCo owns major brands such as Frito-Lay, Quaker, and Gatorade, and has consistently provided promotional payments and advertising to Walmart. This, the FTC alleges, disadvantaged family-owned grocers, local convenience stores, and larger chains.
The 1936 Robinson-Patman Act prohibits advertising and promotional allowances that favor large customers over small businesses. The commission voted 3-2 in favor of the lawsuit, citing this act as a basis for its claims.
PepsiCo disputes the FTC’s allegations, stating that it does not favor certain customers by offering discounts or promotional support to some retailers over others. The company has vowed to vigorously present its case in court.
The FTC’s lawsuit is part of its efforts to crack down on anticompetitive practices under the Robinson-Patman Act, which has rarely been enforced since the late 1980s. This is an “unprecedented expansion” of the act, according to PepsiCo.
Source: https://edition.cnn.com/2025/01/17/business/pepsi-walmart-ftc-prices/index.html