FTC Sues PepsiCo, Alleges ‘Ridiculous’ Soft Drink Competition

The Federal Trade Commission on Friday filed charges against PepsiCo Inc.

The FTC has supported a large retailer that has spent years staking out struggling retailers like Pepsi, offering its customers perks like promotional discounts, while denying those perks to competitors.

Pepsi’s unfair practices resulted in higher prices for American households, while denying competing retailers the ability to compete fairly, in violation of the Robinson-Patman Act, according to the complaint.

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“When companies like Pepsi outbid giant retailers, it tilts the playing field in favor of smaller companies and ultimately raises prices for American consumers,” FTC Chairwoman Lena M. Kahn said in a statement. “The FTC’s action will help all grocers and other businesses — regardless of size — get a fair shake and be able to compete on the basis of their skills, abilities and capabilities.”

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

Pepsi has been accused by the FTC of violating the Robinson-Patman Act and providing benefits to an unnamed retailer. (Denise Trussello/Getty Images for LARAS/Getty Images)

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The case comes a month after the commission sued South Glazer, the largest US wine and spirits distributor, in December 2024 – for violating the same law.

The majority of the alleged violations were reversed due to the legal protections granted to Pepsi and the legal protections granted to the “preferred” retailer, according to the FTC’s statement.

Washington, DC, Federal Trade Commission, Building Exteriors and Signage. (Photo by Jeffrey Greenberg/Universal Images Group via Getty Images/Getty Images)

The Commission stated that it is in the process of making the updated information available.

“Until Pepsi’s behavior is corrected, Pepsi’s anticompetitive practices have created a level playing field by denying competing retailers, including family-owned grocery stores, the opportunity to compete with Pepsi’s favorite big-box retailer customers,” he said. The statement.

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Pepsi and Walmart, which other outlets have reported as preferred competitors, did not immediately respond to a request for comment from Fox News Digital.