The Federal Trade Commission is accusing PepsiCo of illegal price discrimination, giving preferential treatment to one large retailer over its competitors.
The Federal Trade Commission ( FTC ) has filed a lawsuit against PepsiCo, alleging the food and beverage giant engaged in illegal price discrimination. The FTC claims PepsiCo provided an unnamed large retail chain with more favorable prices and promotional benefits compared to its competitors.
This practice, according to the FTC, violates the Robinson-Patman Act, which prohibits sellers from offering different prices to competing buyers for the same product or selectively providing allowances like advertising reimbursements. The agency asserts that PepsiCo granted Walmart promotional payments, allowances, advertising, and promotional tools that were not extended to its rivals. PepsiCo vehemently denies these allegations, stating that its practices adhere to industry standards and that it does not favor specific customers by offering discounts or promotional support to some while excluding others. They plan to vigorously defend their case in court.The lawsuit, filed in the Southern District of New York, is currently sealed, with a substantial portion of the alleged violations redacted to protect legal privileges for both PepsiCo and the unnamed retailer. The FTC aims to unseal these redacted sections to demonstrate how PepsiCo allegedly violated the law and how these actions resulted in higher prices for competing retailers. The Robinson-Patman Act, enacted in 1936, saw decreased enforcement during the 1980s deregulation period. The FTC revived its enforcement efforts in December 2022. Notably, this lawsuit coincides with the final business day before President-elect Donald Trump's inauguration, marking the end of Lina Khan's tenure as FTC Chair. Her Republican successor, Andrew Ferguson, a current commissioner, issued a dissenting statement against the decision to sue PepsiCo
PRICE DISCRIMINATION FTC PEPSICO Robinson-PATMAN ACT RETAILERS
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