The U.S. Federal Trade Commission (FTC) filed a lawsuit against PepsiCo, Inc. on Friday, alleging the company engaged in illegal price discrimination by offering a big-box retailer unfair pricing advantages.
The complaint claims PepsiCo provided promotional payments and other benefits to the retailer while increasing prices for competitors.
“When firms like Pepsi give large retailers a leg up, it tilts the playing field against small firms and raises prices for consumers,” said FTC Chair Lina M. Khan. “This action will help ensure businesses of all sizes can compete fairly based on their skills and efficiency.”
The FTC alleges PepsiCo’s practices affected retailers ranging from grocery chains to small convenience stores. The lawsuit, filed under the Robinson-Patman Act (RPA), accuses the company of violating rules on the use of advertising and promotional allowances.
A spokesperson for PepsiCo said in a statement, “PepsiCo disputes the FTC’s allegations and the way this suit was filed. We will defend our position and remain committed to competition.”
This case is the FTC’s second enforcement action under the RPA in recent months, following a December 2024 lawsuit against Southern Glazer’s, a major U.S. distributor of wine and spirits. Portions of the PepsiCo complaint remain redacted, but the FTC plans to seek the release of details on the alleged violations.
