The US Federal Trade Commission (FTC) filed a lawsuit against PepsiCo, Inc. on Friday, alleging that the company engaged in illegal price discrimination by providing unfair pricing advantages to large retailers.
The complaint alleges that PepsiCo provided promotional payments and other benefits to the retailer while increasing prices for competitors.
Lina M said: “When companies like Pepsi give big retailers a leg up, they tilt the playing field against small businesses and raise prices for consumers,” FTC Chairwoman Khan said. “This measure will help ensure that businesses of all sizes can compete fairly based on their skills and competence.”
The FTC alleges that PepsiCo’s practices affected retailers ranging from grocery chains to 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 PepsiCo spokesperson said in a statement: “PepsiCo rejects the FTC’s allegations and the manner in which this lawsuit was brought. We will defend our position and remain committed to competition.”
The case is the FTC’s second enforcement action under the RPA in recent months, following a December 2024 lawsuit against Southern Glazer, a major wine and spirits distributor in the United States. Portions of PepsiCo’s complaint remain redacted, but the FTC plans to seek to release details about the alleged violations.