FTC Drops Price Discrimination Lawsuit Against PepsiCo

Published 17 hours agoPEP

FTC Drops Price Discrimination Lawsuit Against PepsiCo

The Federal Trade Commission (FTC) has decided to drop its lawsuit against PepsiCo, which accused the company of unfair pricing practices favoring Walmart. The allegations centered around violations of the Robinson-Patman Act, with the FTC claiming that PepsiCo provided promotional payments and advertising benefits to Walmart but not to other retailers. This was seen as disadvantaging smaller stores and potentially raising consumer prices.

However, PepsiCo has consistently disputed these claims, arguing that its pricing practices adhere to standard industry norms and do not unfairly favor larger customers like Walmart. Following the decision to drop the lawsuit, internal discussions were highlighted, with some FTC commissioners reportedly criticizing former Chair Lina Khan for moving forward with the case prematurely, according to Reuters.

The decision had a moderately stable impact on PepsiCo’s stock, which saw only a slight decrease of 0.23%, ending at $130.12. The company appears to be continuing its focus on maintaining equitable business practices across its customer base, in line with industry standards.

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