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FTC drops Biden-era suit accusing Pepsi of price discrimination

  • The Federal Trade Commission, now led by Republicans, decided to drop a January lawsuit in New York that accused PepsiCo of providing Walmart with unfair pricing benefits.
  • The lawsuit was initiated by the prior Democratic-led FTC under Chairwoman Lina Khan days before President Trump took office, with Democratic Commissioners supporting and Republicans dissenting.
  • The case was based on the seldom-invoked Robinson-Patman Act of 1936, which prohibits offering promotional incentives that give preferential treatment to large buyers over smaller rivals.
  • FTC Chair Andrew Ferguson called the lawsuit a “dubious partisan stunt” rushed days before Trump's inauguration and said “taxpayer dollars should not be used” on such cases, while PepsiCo claimed fair and non-discriminatory pricing.
  • The dismissal ends this legal challenge but drew criticism from former Chair Khan as a “gift to giant retailers” and may influence future enforcement of price discrimination laws.
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globalcompetitionreview.com broke the news in on Thursday, May 22, 2025.
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