FTC Files Lawsuit Against PepsiCo Over Pricing Practices

The United States Federal Trade Commission (FTC) has initiated legal proceedings against PepsiCo Inc., accusing the company of engaging in illegal price discrimination. The FTC alleges that PepsiCo offered discounted prices to a large, big-box retailer while increasing prices for competing retailers and consumers, a practice that could harm competition and lead to higher prices for American consumers.

FTC Chair Lina Khan emphasized the importance of fair competition, stating, "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 lawsuit, filed in the US District Court for the Southern District of New York, charges PepsiCo with violating the Robinson-Patman Act. The FTC claims that PepsiCo used "advertising and promotional allowances" and other tactics to favor one retailer over others, thereby engaging in discriminatory pricing practices.