The Federal Trade Commission on Friday sued PepsiCo in a last-minute blitz of lawsuits before the end of the Biden administration, alleging that the beverage giant forced many consumers to pay higher prices by giving Walmart unfair pricing advantages.

A lawsuit filed by the Federal Trade Commission alleges that food and beverage maker PepsiCo engaged in illegal price discrimination by giving unfair price advantages to one big-box retailer.

The lawsuit, filed on 17 January 2025, contends that PepsiCo's preferential treatment of a retailer constituted a breach of the Robinson-Patman Act (RPA), a legislation designed to protect fair competition by prohibiting anticompetitive price discrimination.

The U.S. Federal Trade Commission sued PepsiCo on Friday for offering preferential pricing to a large retailer, whom a source familiar with the matter confirmed was Walmart .

The Robinson-Patman Act was passed in 1936, but the federal government stopped enforcing it during the deregulation of the 1980s. The FTC resumed its enforcement in December when it sued Southern Glazer’s, the largest U.S. distributor of wine and spirits.

FTC accuses PepsiCo of illegal price discrimination, benefiting Walmart. Read about the lawsuit, PepsiCo’s response, and what it means for fair competition.

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,

Uncle Sam is always watching, even if you’re a major brand like Pepsi or Walmart. The Federal Trade Commission, or what we will call FTC from here on, has filed a major lawsuit against Pepsi for colluding with Walmart to keep prices lower at Walmart stores than any other stores.