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FTC Sues PepsiCo: Alleges 20% Price Hike for Consumers Due to Favoritism

The Federal Trade Commission (FTC) has filed a lawsuit against PepsiCo, alleging the company engaged in illegal price discrimination. The FTC claims PepsiCo provided Walmart with more favorable pricing and promotional support than its competitors, violating the Robinson-Patman Act. This act, established in 1936, prohibits sellers from offering different prices to competing buyers for the same product. PepsiCo denies these allegations, asserting that their practices align with industry norms and that the lawsuit is both factually and legally incorrect. The complaint, filed in the Southern District of New York, remains sealed, with significant portions redacted. The FTC seeks to reveal these redactions to demonstrate how PepsiCo’s actions allegedly led to higher prices for other retailers. This legal action marks a resurgence in the enforcement of the Robinson-Patman Act, which had been largely dormant since the 1980s.

Source: www.cnbc.com

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