FTC: Pepsi illegally saves its best deals for big-box retailers
The Federal Trade Commission sued PepsiCo on Friday over “price discrimination,” alleging it illegally reserves its best deals for big retailers, squeezing smaller independent stores.
The move comes in the last week of President Joe Biden’s term. The FTC, led by Lina Khan, has aggressively targeted companies and scored some major wins, like blocking the proposed Kroger-Albertsons merger.
The lawsuit against Pepsi appears be an effort to get consumer-friendly litigation out the door before Khan’s time as head of the FTC is up and a more business-friendly antitrust cop enters the role.
The lawsuit accuses Pepsi of violating the Robinson-Patman Act, a 1930s law that prohibits price favoritism for larger customers over small businesses. According to the FTC, Pepsi has done things like offer promotional payments to big-box retailers but not to independent stores.
“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,” Khan said in a statement. Pepsi did not immediately respond to a request for comment.
Before last month, when the FTC sued beverage distributor Southern Glazer’s over similar allegations, the FTC hadn’t pursued an RPA case since 2000.
Investors didn’t seem all that rattled by the news, and the stock is up a bit as of noon ET. PepsiCo also announced today that it completed its $1.2 billion acquisition of Siete Foods, a brand that consists of healthy-ish Mexican-inspired foods like tortilla chips and salsas.
The lawsuit against Pepsi appears be an effort to get consumer-friendly litigation out the door before Khan’s time as head of the FTC is up and a more business-friendly antitrust cop enters the role.
The lawsuit accuses Pepsi of violating the Robinson-Patman Act, a 1930s law that prohibits price favoritism for larger customers over small businesses. According to the FTC, Pepsi has done things like offer promotional payments to big-box retailers but not to independent stores.
“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,” Khan said in a statement. Pepsi did not immediately respond to a request for comment.
Before last month, when the FTC sued beverage distributor Southern Glazer’s over similar allegations, the FTC hadn’t pursued an RPA case since 2000.
Investors didn’t seem all that rattled by the news, and the stock is up a bit as of noon ET. PepsiCo also announced today that it completed its $1.2 billion acquisition of Siete Foods, a brand that consists of healthy-ish Mexican-inspired foods like tortilla chips and salsas.
