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The Federal Trade Commission on Friday filed a lawsuit against PepsiCo, Inc., accusing the company of engaging in illegal price discrimination by offering unspecified “big box, big box” retailers unfair pricing benefits, while raising prices for others.
The FTC alleges that Pepsi has disadvantaged retailers for years, consistently favoring one major retailer by offering its customers benefits such as promotional payments, while denying those benefits to competitors.
Pepsi’s unfair practices led to price increases for American families, while denying competing retailers the ability to compete fairly, in violation of the Robinson-Patman Act, according to the complaint.
The FTC sued PepsiCo for allegedly favoring one “bix-box” retailer. (Kennedy Hayes/Fox News)
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“When firms like Pepsi give big retailers a leg up, that tilts the playing field in favor of smaller firms and ultimately raises prices for American consumers,” FTC Chairwoman Lina M. Khan wrote in a statement. “The FTC’s action will help ensure that all grocery stores and other businesses—no matter their size—can get a fair shake and compete on the merits of their skill, efficiency, and talent.”
Under the Robinson-Patman Act, retailers are prohibited from using financial incentives to engage in price discrimination.
Pepsi has been sued by the FTC for allegedly violating the Robinson-Patman Act and providing benefits to one unnamed retailer. (Denise Truscello/Getty Images for LARAS / Getty Images)
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The case comes a month after the commission sued the largest US wine and spirits distributor, Southern Glazer’s, in December 2024 – saying it violated the same law.
Most of the alleged violations were settled, thanks to the legal protections given to Pepsi and the “preferred” retailer, according to the FTC’s statement.
Washington DC, Federal Trade Commission, exterior building and signage. (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 changed information.
“Until Pepsi’s conduct is rectified, Pepsi’s anti-competitive actions will continue to create an uneven playing field by denying competing retailers, including family-owned grocery stores, the opportunity to compete against Pepsi’s core customer base,” according to the statement.
| A ticker | Security | Finally | Change | change % |
|---|---|---|---|---|
| PEP | PEPSICO INC. | 148.25 | +1.71 |
+1.17% |
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Pepsi and Walmart, the other retailers that have reported as preferred contenders, did not immediately respond to a request for comment from Fox News Digital.
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