PepsiCo faces U.S. lawsuit over alleged price discrimination 

USA – PepsiCo is facing a merchant lawsuit in the U.S. Southern District of New York, with accusations of illegal price discrimination benefiting Walmart.  

The suit, filed by a restaurant owner, alleges the beverage giant engaged in “anticompetitive and unfair business practices” related to the sale of Pepsi soft drinks. 

According to the complaint, PepsiCo allegedly provided Walmart with promotional payments, allowances, and services unavailable to other retailers on proportionally equal terms.  

The plaintiff claims these benefits allowed Walmart to sell products at lower prices, putting smaller competitors at a significant disadvantage and causing them to lose business. 

The lawsuit argues that these actions created an artificial competitive advantage for Walmart in violation of the federal Robinson-Patman Act and Massachusetts state law.

The plaintiff contends that PepsiCo’s practices resulted in artificially inflated prices for other retailers, eroding their ability to compete. 

PepsiCo has previously faced similar allegations. In January, the U.S. Federal Trade Commission (FTC) launched legal action against the company, accusing it of providing “unfair pricing advantages” to a “large, big box retailer” while raising prices for other customers. Although the FTC did not disclose the retailer’s identity, the accusations closely resemble those made in the current case. 

However, in May, the FTC dropped its case, citing political motivations in the lawsuit’s authorization. FTC chairman Andrew Ferguson stated that the legal action had been approved just days before President Trump’s inauguration, calling it a politically driven move by the Biden-Harris administration. 

The new lawsuit seeks to represent a class of retailers allegedly harmed by PepsiCo’s pricing and promotional strategies. PepsiCo has not publicly responded to the latest claims. 

In the fiscal quarter ended June 14, PepsiCo reported a 1% year-on-year increase in revenue to US$22.73 billion, with organic revenue up 2.1% led by 6% growth in international operations, while North American revenue remained flat. 

Net income for the quarter fell to US$1.26 billion largely attributed to a US$1.86 billion impairment charge linked to the company’s Rockstar energy drink brand and Be & Cheery, a snack brand in China. 

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