Cans of Pepsi-Cola are displayed at a Target store in the Flatbush neighborhood of Brooklyn on February 9, 2024 in New York City.
Michael M. Santiago | Michael M. SantiagoGetty Images
this The Federal Trade Commission stated it’s suing friday Pepsi Alleging unlawful price discrimination, alleges the food and beverage giant offered an unnamed retailer better prices than its competitors.
Walmart People familiar with the matter told CNBC it was an unnamed retailer.
The FTC accused PepsiCo of violating the Robinson-Patman Act, which prohibits sellers from offering different prices to competing buyers for the same “goods” or selectively providing subsidies, such as advertising compensation. The agency argued that PepsiCo provided promotional fees and perks, as well as advertising and promotional tools to Walmart, but it did not provide them to the retail giant’s competitors.
PepsiCo denies the accusations and says the FTC’s lawsuit is wrong both factually and legally.
“PepsiCo strongly disputes the FTC’s allegations and the partisan manner in which the lawsuit was brought,” the company said in a statement to CNBC. “We will vigorously present our case in court.” “PepsiCo’s actions were consistent with industry standards, and we will vigorously present our case in court.” We do not favor certain customers by offering discounts or promotional support to some over others.”
Walmart did not immediately respond to CNBC’s request for comment.
The complaint was filed in the Southern District of New York and has been sealed.
The FTC also said “a significant portion” of the alleged violations were redacted in the lawsuit, citing legal protections for PepsiCo and the big-box retailer. The commission is seeking to undo the revisions to show how PepsiCo violated the law and how these alleged actions led to price increases at competing retailers.
The Robinson-Patman Act was passed in 1936, but the federal government stopped enforcing it during deregulation in the 1980s. The FTC resumed enforcement in December, when Sue Southern Glazer Corporationthe largest wine and spirits distributor in the United States.
The lawsuit, which comes on the last working day before President-elect Donald Trump’s inauguration on Monday, will mark the end of Lina Khan’s term as FTC chair. Her Republican successor, Andrew Ferguson, currently serves on the committee and issued a statement opposing the decision to sue PepsiCo.
The Biden administration has taken A moment of panic of Take legal action against the company and business executives in their final days, targeting Capital One, Southwest Airlines and Elon Musk, among others.
—CNBC mary catherine wellens contributed reporting to this story.
