
FTC sues PepsiCo, alleging unfair pricing for retailers
By Lauren Taylor (Anchor), Roey Hadar (Producer)
The Federal Trade Commission sued PepsiCo, alleging the company gave a big-box store an unfair price advantage. It’s part of a set of lawsuits that will be some of the last under the Biden administration.
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In the suit, the FTC said PepsiCo gave pricing advantages to one large chain but did not give those incentives to smaller retailers. As a result, the agency accused PepsiCo of inflating prices for American consumers.

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The lawsuit did not name the company PepsiCo sold to at a discount because the company did not engage in wrongdoing. However, outlets including The Wall Street Journal and NPR reported Walmart was the chain PepsiCo allegedly gave discounts to.
PepsiCo denied the charges. In a statement shared with multiple media outlets, the company said, “PepsiCo’s 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.”
The FTC is enforcing a law originally enacted during the Great Depression that bans suppliers from selling goods to retailers at different prices. Regulators slowed their enforcement of the law in the 1980s as part of a broader trend toward loosening regulations.
The FTC voted to advance the lawsuit by a 3-2 margin, with both Republicans voting against filing it. In a dissent, Republican Commissioner Melissa Holyoak called the lawsuit “the worst case” she has seen while on the commission.
LAUREN TAYLOR: The Federal Trade Commission sued PepsiCo, alleging the company gave a big-box store an unfair price advantage.
It’s part of a set of lawsuits that will be some of the last under the Biden administration.
In the suit, the FTC said PepsiCo gave pricing advantages to one large chain but did not give those incentives to smaller retailers. The agency accused PepsiCo of inflating prices for American consumers.
The lawsuit did not name the company PepsiCo sold to at a discount because it did not engage in wrongdoing. But outlets including The Wall Street Journal and NPR reported Walmart was the chain PepsiCo allegedly gave the discounts.
PepsiCo denied the charges in the lawsuit in a statement to multiple media outlets, saying, “PepsiCo’s 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.”
The FTC is enforcing a law originally enacted during the Great Depression banning suppliers from selling goods to retailers at different prices. Regulators slowed their enforcement of the law in the 1980s, as part of a broader trend toward loosening regulations.
The FTC voted to advance the lawsuit by a 3-2 margin, with both Republicans voting against filing it. In a dissent, Republican Commissioner Melissa Holyoak called the lawsuit “the worst case” she has seen while on the commission.
For Straight Arrow News, I’m Lauren Taylor.
And for all the latest updates on this and other top stories, download the Straight Arrow News app or visit SAN.com.
Media Landscape
See how news outlets across the political spectrum are covering this story. Learn moreBias Summary
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