The United States Federal Trade Commission (FTC) sued PepsiCo this Friday for offering preferential prices to a large retailer, which, according to a source familiar with the matter, is Walmart.
PepsiCo’s practices raised prices for consumers by putting other retailers, from large supermarket chains to small convenience stores, at a disadvantage, the regulator said.
“PepsiCo strongly rejects the FTC’s allegations and the biased manner in which the lawsuit was filed,” the company said in a statement.
The lawsuit, filed in New York, alleges that the soft drink maker violated the Robinson-Patman Act, legislation that remained largely unenforced for decades by the federal government.
Walmart declined to comment.
Read: Los Angeles sues PepsiCo and Coca-Cola for plastic pollution
“The FTC’s actions will help ensure that all supermarkets and other businesses, regardless of size, can compete fairly and based on their skill, efficiency and talent,” said outgoing FTC Chair Lina Khan in a statement.
The FTC’s two Republican commissioners, including Andrew Ferguson, who will chair the commission when President-elect Donald Trump takes office on Monday, voted against the case.
With information from Reuters
Do you like to get informed through Google News? Follow our Showcase to have the best stories
