The Federal Trade Commission (FTC) has filed a lawsuit against PepsiCo, alleging that the food and beverage giant engaged in illegal price discrimination by offering unfair price advantages to Walmart at the expense of other retailers and consumers. The FTC claims PepsiCo made promotional payments to Walmart but not to other large grocery chains or independent convenience stores, forcing many Americans to pay higher prices for PepsiCo products unless they shop at Walmart.
A lawsuit filed by the Federal Trade Commission alleges that food and beverage maker PepsiCo engaged in illegal price discrimination by giving unfair price advantages to one big-box retailerFILE - Bottles of Diet Pepsi Wild Cherry are displayed at a market in Pittsburgh, Jan. 26, 2023. on Friday, alleging that it has engaged in illegal price discrimination by giving unfair price advantages to one big-box retailer at the expense of other vendors and consumers.
The benefiting customer wasn't named in an FTC statement about the lawsuit. But a source familiar with the case, who asked not to be named because they were not authorized to it, said the retailer was Walmart.included making promotional payments to Walmart but not to large grocery chains or independent convenience stores. The FTC said the activity forces many Americans to pay inflated prices for PepsiCo products unless they shop at Walmart.
“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,” FTC Chair Lina Khan said in the statement. “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 FTC sued PepsiCo under the rarely enforced 1936 Robinson-Patman Act. The FTC said the act prohibits companies from using promotional incentive payments to favor large customers over smaller ones. It was the second time in a little more than a month that the FTC has cited the Robinson-Patman Act in a lawsuit. In December, the commissionWine and Spirits, a large U.S. distributor, saying it illegally discriminated against small and independent businesses by giving discounts and rebates to larger stores.
PRICE DISCRIMINATION PEPSICO WALMART FTC ROBINSON-PATMAN ACT
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