The Federal Trade Commission (FTC) filed a lawsuit against PepsiCo on Friday, accusing the company of illegal price discrimination by offering Walmart more favorable prices than its competitors. The FTC alleges that Pepsi violated the Robinson-Patman Act, which prohibits sellers from giving different prices or promotional allowances to competing buyers for the same product. The lawsuit claims Pepsi gave Walmart exclusive benefits, such as promotional payments and advertising tools, which were not extended to other retailers.

PepsiCo denied the allegations, stating that the FTC’s claims are factually and legally incorrect. The company argued that its practices are consistent with industry norms and that it does not offer special discounts or promotional support to select customers. The FTC’s complaint, filed in the Southern District of New York, is sealed, with a significant portion of the violations redacted for legal reasons. The FTC seeks to lift these redactions to expose how Pepsi’s actions allegedly led to higher prices for other retailers.

The Robinson-Patman Act, enacted in 1936, had been largely unenforced during the 1980s deregulation but saw renewed action in December 2024, with the FTC’s lawsuit against Southern Glazer’s. The Pepsi lawsuit comes just before the end of FTC Chair Lina Khan’s tenure, with a dissenting statement from her Republican successor, Andrew Ferguson.