Pepsi and Walmart class action lawsuit overview:
- Who: Three consumers filed a class action lawsuit against PepsiCo Inc. and Walmart Inc.
- Why: The plaintiffs allege the companies engaged in an illegal price-fixing scheme that artificially raised the price of Pepsi products at every retailer, except Walmart.
- Where: The Pepsi and Walmart class action lawsuit was filed in New York federal court.
A new class action lawsuit claims PepsiCo and Walmart engaged in an illegal price-fixing scheme to artificially raise the price of Pepsi products at every retailer, except Walmart, for more than a decade.
Lead plaintiff Martin Gelbspan filed the class action complaint against Pepsi and Walmart on Dec. 16 in New York federal court, alleging violations of the Sherman Antitrust Act, state antitrust laws and the common law doctrine of unjust enrichment.
According to the class action lawsuit, Pepsi and Walmart used their dominant market shares to cause Walmart’s competitors to pay higher prices at wholesale while also suppressing price competition for consumers at retail.
The lawsuit claims the companies’ actions financially benefited themselves at the expense of consumers, who were forced to pay higher prices for Pepsi products from every seller other than Walmart.
Pepsi, Walmart price-fixing scheme used Standard Oil-like tactics, lawsuit claims
The class action lawsuit alleges the price-fixing scheme consisted of an agreement between Pepsi and Walmart to give Walmart preferential pricing.
As a result, Pepsi sold its soft drink products to Walmart at prices below any other competitor of Walmart’s while inflating the sale price of its soft drink products at every other retailer, the lawsuit claims.
The class action lawsuit alleges Pepsi also provided promotional payments, allowances and services to Walmart that were not offered to other retailers, putting Walmart’s competitors at a further disadvantage.
The lawsuit argues that this conduct is exactly what antitrust laws are intended to prevent and protect against, comparing it to the tactics used by Standard Oil to drive competitors from the market.
As a result of the alleged price-fixing scheme, the lawsuit claims that consumers who bought Pepsi soft drink products from retailers other than Walmart paid higher prices than they would have in a competitive market.
The lawsuit seeks to represent a nationwide class of consumers who bought Pepsi soft drink products from any retailer other than Walmart from 2015 until the present. It demands actual, treble and statutory damages, disgorgement of profit, injunctive relief, reasonable costs and attorneys’ fees and pre- and post-judgment interest.
Meanwhile, Walmart was previously accused of falsely advertising its Great Value Macaroni & Cheese Original Microwavable Cup as free of artificial flavors and preservatives, even though the product allegedly contains citric acid, an artificial preservative and flavoring agent.
What do you think of the allegations made in this Pepsi and Walmart class action lawsuit? Let us know in the comments.
The plaintiff is represented by Blake Hunter Yagman of Schonbrun Seplow Harris Hoffman & Zeldes LLP.
The Pepsi and Walmart price-fixing class action lawsuit is Gelbspan, et al. v. PepsiCo Inc., et al., Case No. 7:25-cv-10397, in the U.S. District Court for the Southern District of New York.
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12 thoughts onPepsi, Walmart sued over alleged price-fixing scheme that inflated soda prices
The price of soda is out of this world.