FTC Drops Price Discrimination Lawsuit Against PepsiCo

Published 7 hours agoPEP

FTC Drops Price Discrimination Lawsuit Against PepsiCo

The Federal Trade Commission (FTC) has decided to withdraw its lawsuit against PepsiCo, which accused the company of offering unfair pricing advantages to retail giant Walmart. The case was initially filed in January 2025 under the Robinson-Patman Act. This development marks the end of allegations that PepsiCo's pricing strategy was discriminatory.

Newly appointed FTC Chairman Andrew Ferguson criticized the lawsuit, describing it as a 'partisan misuse of taxpayer funds.' The move highlights a shift in approach within the commission under the new administration. Meanwhile, former FTC Chair Lina Khan, who was responsible for filing the case, expressed concern that dropping the lawsuit could benefit major retailers like Walmart and potentially lead to higher prices for consumers.

PepsiCo has consistently denied any wrongdoing, maintaining that its pricing practices are fair and competitive. The company remains steadfast in its commitment to offering equitable pricing across various customer brackets, aligning with industry norms. Reuters reported PepsiCo's stance that it operates under a framework that ensures all customers are treated equally, dispelling claims of favoritism towards Walmart.

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