The Federal Trade Commission (FTC) has filed an antitrust lawsuit against PepsiCo, alleging that the company violated the Robinson-Patman Act by giving Walmart unfair price advantages at the expense of competing retailers. Stacy Mitchell, co-executive director of the Institute for Local Self-Reliance and author of Big-Box Swindle, says this tactic is a key factor in Walmart’s market dominance.
According to Mitchell, PepsiCo has fueled the decline of local retailers, food deserts, and rising grocery prices by favoring Walmart with discriminatory pricing. This practice allows Walmart to capture $1 in every $4 Americans spend on groceries, while independent retailers are forced to charge higher prices. The FTC’s action puts us on a path toward lowering grocery prices, eliminating food deserts, and revitalizing local economies.
Mitchell emphasizes the importance of reactivating the Robinson-Patman Act to revive independent retailers and restore competition in the grocery sector. She commends the FTC for taking decisive action and urges policymakers and regulators to prioritize robust antitrust enforcement. By doing so, they can ensure that economic systems work for everyone, not just large corporations.
Key findings:
* Walmart captures $1 in every $4 Americans spend on groceries
* In 43 metropolitan areas, Walmart accounts for 50 percent or more of grocery sales
* PepsiCo’s actions have fueled the decline of local retailers and food deserts
Source: https://ilsr.org/articles/stacy-mitchell-on-ftc-action-against-pepsico-implicating-walmart