The U.S. Federal Trade Commission sued PepsiCo on Friday for offering preferential pricing to a large retailer, whom a source familiar with the matter confirmed was Walmart .
The commission alleges that the retailer, whose name was redacted in the statement from commissioners, received “unfair pricing advantages” that were not made available to others.
The FTC sued PepsiCo on Jan. 17, alleging that it has engaged in illegal price discrimination by giving unfair price advantages to Walmart at the expense of other vendors and consumers.
The FTC has filed a lawsuit against PepsiCo, accusing it of illegal price discrimination by giving preferential pricing to Walmart, disadvantaging other retailers and customers. PepsiCo disputes these allegations,
Company’s conduct has forced competing retailers, including convenience stores, to pay higher prices, agency says
"Much of Walmart’s market dominance can be attributed to its use of this illegal and anti-competitive tactic," says Stacy Mitchell
NEW YORK, Jan 18 (Bernama-Xinhua) -- The US Federal Trade Commission (FTC) on Friday sued PepsiCo in a last-minute blitz of lawsuits before the end of the Joe Biden administration, alleging that the beverage giant forced many consumers to pay higher prices by giving Walmart unfair pricing advantages, according to Xinhua.
The Robinson-Patman Act was passed in 1936, but the federal government stopped enforcing it during the deregulation of the 1980s. The FTC resumed its enforcement in December when it sued Southern Glazer’s, the largest U.S. distributor of wine and spirits.
According to the FTC’s complaint, Pepsi has been providing unfair pricing advantages to one of its largest customers—a major big box retailer—while raising prices for competing retailers and customers. Reuters reports that the retailer is none other than Walmart Inc. WMT , citing a source familiar with the discussions.
The US Federal Trade Commission sued PepsiCo Inc. Friday under a rarely invoked 1930s law called the Robinson-Patman Act that bars price discrimination against retailers.
The agency claims the soda giant gave “unfair” pricing advantages to a larger retailer, forcing consumers to pay more at competing stores. Pepsi “strongly disputes” the allegations.