The\u00a0Federal Trade Commission said\u00a0Friday that it is suing\u00a0PepsiCo\u00a0for illegal price discrimination, alleging the food and beverage giant gave an unnamed retailer more favorable prices than its competition.<\/p>\n
Walmart\u00a0is the unnamed retailer, people familiar with the matter told CNBC.<\/p>\n
The FTC alleges Pepsi violated the Robinson-Patman Act, which bars sellers from giving competing buyers different prices for the same \u201ccommodity\u201d or selectively providing allowances, like compensation for advertising. The agency argues Pepsi gave Walmart promotional payments and allowances, as well as advertising and promotional tools, that it didn\u2019t offer to the retail giant\u2019s rivals.<\/p>\n
Pepsi denied the allegations and said the FTC\u2019s lawsuit is wrong, both factually and legally.<\/p>\n
\u201cPepsiCo strongly disputes the FTC\u2019s allegations, and the partisan manner in which the suit was filed. We will vigorously present our case in court,\u201d the company said in a statement to CNBC. \u201cPepsiCo\u2019s practices are in line with industry norms and we do not favor certain customers by offering discounts or promotional support to some customers and not others.\u201d<\/p>\n
Walmart did not immediately respond to a request for comment from CNBC.<\/p>\n
The complaint, which was filed in the Southern District of New York, is currently sealed.<\/p>\n
The FTC also said that a \u201csubstantial portion\u201d of the alleged violations are redacted in the lawsuit, citing legal protections given to Pepsi and the large, big box retailer. The commission is seeking to lift the redactions to show how Pepsi broke the law and how those alleged actions led to higher prices for competing retailers.<\/p>\n
The Robinson-Patman Act was passed in 1936, but the federal government stopped enforcing it during the deregulation of the 1980s. The FTC resumed its enforcement in December when it\u00a0sued Southern Glazer\u2019s, the largest U.S. distributor of wine and spirits.<\/p>\n
The lawsuit comes on the final business day before President-elect Donald Trump\u2019s inauguration on Monday, which will spell the end of Lina Khan\u2019s time as chair of the FTC. Her Republican successor, Andrew Ferguson, currently serves on the commission and released a statement dissenting against the decision to sue Pepsi.<\/p>\n
The Biden administration has taken\u00a0a flurry\u00a0of\u00a0legal action against companies\u00a0<\/strong>and corporate executives in its final days, targeting Capital One, Southwest Airlines and Elon Musk, among others.<\/p>\n \u2014 CNBC\u2019s\u00a0<\/em>Mary Catherine Wellons<\/em>\u00a0contributed reporting for this story.<\/em><\/p>\n<\/p>\n The\u00a0Federal Trade Commission said\u00a0Friday that it is suing\u00a0PepsiCo\u00a0for illegal price discrimination, alleging the food and beverage giant gave an unnamed retailer more favorable prices than its competition. Walmart\u00a0is the unnamed retailer, people familiar with the matter told CNBC. The FTC alleges Pepsi violated the Robinson-Patman Act, which bars sellers from giving competing buyers different prices […]<\/p>\n","protected":false},"author":0,"featured_media":14106,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-14105","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/14105","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=14105"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/14105\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/14106"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=14105"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=14105"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=14105"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}