The Federal Trade Commission (FTC) has filed a lawsuit against PepsiCo, Inc., accusing the company of illegally discriminating against prices in favor of a large retailer. The FTC alleges that PepsiCo's practices have led to inflated prices for consumers and an unfair playing field for competing retailers.
The Federal Trade Commission (FTC) filed a lawsuit against PepsiCo, Inc. on Friday, alleging the company engaged in illegal price discrimination. The FTC claims PepsiCo has been providing unfair pricing advantages to an unnamed 'large, big box' retailer for years, while simultaneously raising prices for other retailers.
The FTC alleges PepsiCo has disadvantaged retailers by consistently favoring one large retailer through practices like promotional payments, denying these benefits to its competitors. This, according to the complaint, has led to inflated prices for American families and hampered the ability of competing retailers to engage in fair competition, violating the Robinson-Patman Act.FTC Chair Lina M. Khan stated, 'When firms like Pepsi give massive retailers a leg up, it tilts the playing field against small firms and ultimately inflates prices for American consumers. The FTC’s action will help ensure all grocers and other businesses—no matter the size—can get a fair shake and compete on the merits of their skill, efficiency, and talent.' The Robinson-Patman Act prohibits sellers from using financial incentives to engage in price discrimination. This case follows a December lawsuit filed by the FTC against Southern Glazer’s, the largest U.S. distributor of wine and spirits, also for alleged violations of the Robinson-Patman Act. A substantial portion of the alleged violations in the PepsiCo case were redacted due to legal protection afforded to PepsiCo and the alleged 'preferred' retailer, according to an FTC statement. The FTC is attempting to have this redacted information released. 'Until Pepsi’s conduct is remedied, Pepsi’s anticompetitive actions will continue to create an uneven playing field by denying competing retailers, which include family-owned neighborhood grocery stores, the chance to fairly compete against Pepsi’s favored large, big box retailer customer,' the statement reads. Walmart, reportedly the favored competitor, declined to comment on the lawsuit. PepsiCo did not immediately respond to a request for comment.
PRICE DISCRIMINATION PEPSICO FEDERAL TRADE COMMISSION ROBINSON-PATMAN ACT RETAILERS
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