FTC Sues PepsiCo: Price Discrimination Allegations

The FTC has filed a lawsuit against PepsiCo, accusing it of illegal price discrimination by giving preferential pricing to Walmart, disadvantaging other retailers and customers. PepsiCo disputes these allegations, asserting their pricing practices align with industry norms and are not unfair.

The Federal Trade Commission has initiated legal action against PepsiCo, alleging illegal price discrimination. The lawsuit claims the company gave unwarranted price advantages to a major retailer, reportedly Walmart, undermining other vendors and consumers.

According to an FTC source wishing to remain anonymous, Walmart was the retailer receiving these benefits. However, PepsiCo has challenged the lawsuit, calling it misinformed both factually and legally, and insists its practices are fair and standard within the industry.

The FTC asserts that these practices, which include promotional payments to Walmart, lead to inflated prices for consumers unless they shop at the benefiting retailer. The commission aims to ensure a level playing field across all businesses, ensuring fair competition.

(With inputs from agencies.)