FTC sues Pepsi over alleged favoritism to Walmart

Pepsi class action overview:

• Who: The Federal Trade Commission is suing PepsiCo Inc.
• Why: The FTC claims Pepsi gave Walmart better terms and promotional payments than smaller competitors.
• Where: The Pepsi class action was filed in New York federal court.

The Federal Trade Commission has sued PepsiCo Inc., accusing the beverage and food company of giving big box retailer Walmart better terms and promotional payments than smaller competitors.

The FTC filed the complaint against Pepsi in New York federal court Jan. 17. 

The agency claims Pepsi violated the Robinson-Patman Act by giving Walmart key benefits and advantages that it does not offer to other retailers, according to Law360.

The benefits allegedly include promotional allowances and various advertising and promotional tools, Law360 reports.

“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 M. Khan said in a 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.”

FTC files first Robinson-Patman Act cases in decades

The Pepsi lawsuit is only the second case the FTC has filed in decades alleging violations of the Robinson-Patman Act, which generally bars price discrimination, or the practice of charging different customers different prices for the same products.

The first case was filed in December against Southern Glazer’s Wine and Spirits LLC, which the FTC claims offered large retail chains better wine and spirit prices than independent stores.

In the Pepsi case, the FTC alleges the company violated a portion of the statute that prohibits suppliers from using advertising and promotional allowances to favor large customers, such as offering financial incentives to a retailer for promoting a product.

Last year, Los Angeles County slammed beverage giants PepsiCo and Coca-Cola with a lawsuit alleging the companies misled consumers about recycling’s effectiveness in reducing plastic waste. 

What do you think about the allegations against Pepsi? Join the discussion in the comments.

The Pepsi class action is Federal Trade Commission v. PepsiCo Inc., Case No. 1:25-mc-00033, in the U.S. District Court for the Southern District of New York.

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