FTC sues PepsiCo, alleges 'rigged' soft drink competition

The Federal Trade Commission on Friday filed a lawsuit against PepsiCo, Inc., alleging the company engaged in illegal price discrimination by giving an unnamed "large, big box" retailer unfair pricing advantages, while raising prices for others.

The FTC alleges Pepsi has disadvantaged retailers for years, consistently favoring one large retailer by providing its customers advantages like promotional payments, while denying those benefits to its competitors.

Pepsi’s unfair practices have led to inflated prices for American families, while denying competing retailers the ability to fairly compete, violating the Robinson-Patman Act, according to the complaint.

GERMANY - 2025/01/12: In this photo illustration, a Pepsi logo seen displayed on a monitor. (Photo Illustration by Valera Golovniov/SOPA Images/LightRocket via Getty Images)

"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 wrote 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."

Under the Robinson-Patman Act, sellers are prohibited from using financial incentives to engage in price discrimination. 

The case comes a month after the commission sued the largest U.S. distributor of wine and spirits, Southern Glazer’s, in December 2024 – alleging it violated the same law.

A substantial portion of the alleged violations were redacted, due to legal protection afforded to Pepsi and the alleged "preferred" retailer, according to a statement from the FTC.

Walmart, who other outlets reported is the favored competitor, told Fox News Digital it did not wish to comment on the suit.

Pepsi did not immediately respond to a request for comment from Fox News Digital.

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