United States Federal Trade Commission (FTC) announced on Friday that it is suing PepsiCo Inc. for engaging in "illegal price discrimination" by discounting prices for a "large, big box retailer" while increasing prices for competing retailers and customers.
"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 Khan said. "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," she added.
The lawsuit was filed in the US District Court for the Southern District of New York and alleged that Pepsi violated the Robinson-Patman Act by using "advertising and promotional allowances," among other tactics, to favor one retailer over others.
