The Federal Trade Commission (FTC) has sued PepsiCo, alleging that it discriminates against smaller retailers by offering promotional payments to large retailer Walmart while denying similar benefits to independent convenience stores and other small grocers. The FTC claims that this practice gives Walmart an unfair price advantage, forcing Americans to pay higher prices for PepsiCo products unless they shop at the retail giant.
PepsiCo has disputed the allegations, saying its practices are in line with industry norms and do not favor certain customers by offering discounts or promotional support. However, the FTC said PepsiCo’s actions violate the rarely enforced 1936 Robinson-Patman Act, which prohibits companies from using promotional incentive payments to favor large customers over smaller ones.
The lawsuit marks the second time this month that the FTC has cited the Robinson-Patman Act in a case against a major company. The commission is also busy issuing consumer refunds and taking enforcement actions against companies accused of deceptive practices.
The FTC’s decision to sue PepsiCo comes as the Biden administration winds down, with the agency looking to make the marketplace more fair before transferring power.
Source: https://apnews.com/article/ftc-sues-pepsico-price-discrimination-walmart-21ec148b608f3438fdd6d919732be97d