FTC sues PepsiCo, alleges ‘rigged’ soda competition.

Barron’s senior writer Al Root says the stock has increased its dividend in “Barron’s Roundtable.”

The Federal Trade Commission filed a lawsuit on Friday PepsiCo, Inc.alleging that the company engaged in illegal price discrimination by giving an unnamed “big, big box” retailer unfair price advantages, while raising prices for others.

The FTC alleges that Pepsi has disadvantaged retailers for years, consistently favoring a large retailer by offering its customers benefits such as promotional payments, while denying those benefits to its competitors.

Pepsi’s unfair practices have led to price inflation for American families, while denying competing retailers the ability to compete fairly, violating the Robinson-Patman Actaccording to the complaint.

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The FTC is suing PepsiCo for allegedly favoring a “bix-box” retailer. (Kennedy Hayes/Fox News)

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“When companies like Pepsi give an advantage to mass retailers, it tilts the playing field against small businesses and ultimately inflates prices for american consumers” FTC Chairwoman Lina M. Khan wrote in a statement. “The FTC’s action will help ensure that all grocers and other businesses, regardless of size, can have a shake fair and compete on the merits of their skill, efficiency and talent. “

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

Pepsi is being sued by the FTC for allegedly violating the Robinson-Patman Act and offering benefits to an unnamed retailer. (Denise Truscello/Getty Images for LARAS/Getty Images)

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The case comes a month after the commission sued the largest US wine and spirits distributor, Southern Glazer’s, in December 2024, alleging it violated the same law.

A substantial portion of the alleged violations were redacted, due to the legal protection afforded to Pepsi and the alleged “preferred” retailer, according to a statement from the FTC.

Washington DC, Federal Trade Commission, building exterior and sign. (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images/Getty Images)

The commission said it is in the process of trying to get the redacted information lifted.

“Until Pepsi’s conduct is resolved, Pepsi’s anti-competitive actions will continue to create an uneven playing field by denying competing retailers, which include family-owned neighborhood grocers, the opportunity to compete fairly against Pepsi’s preferred big-box retail customer,” the statement said.