FTC dismisses price discrimination lawsuit against PepsiCo

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Melissa Holyoak Commissioner | Federal Trade Commission

FTC dismisses price discrimination lawsuit against PepsiCo

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The Federal Trade Commission (FTC) has voted to dismiss a Robinson-Patman Act lawsuit against PepsiCo, Inc. The case was initially filed in the U.S. District Court for the Southern District of New York. Authorized on January 17, 2025, the lawsuit accused Pepsi of violating Section 5 of the Federal Trade Commission Act and Sections 2(d) and 2(e) of the Robinson-Patman Act by engaging in price discrimination through discounts or services to favored customers.

FTC Chairman Andrew Ferguson criticized the timing of the lawsuit's authorization, stating, "The Biden-Harris FTC rushed to authorize this case just three days before President Trump’s inauguration in a nakedly political effort to commit this administration to pursuing little more than a hunch that Pepsi had violated the law." He emphasized that taxpayer money should not fund legally questionable actions and expressed confidence in FTC staff focusing on consumer protection.

Commissioner Melissa Holyoak supported this view, noting that sending FTC staff into court without solid grounds was inappropriate. She remarked, “Today’s dismissal allows our dedicated staff to focus on bringing enforcement actions where we have reason to believe the law has been violated."

The decision to dismiss was unanimous with a 3-0 vote. Chairman Ferguson's statement was joined by Commissioner Holyoak, while Commissioner Mark R. Meador provided a concurring statement.

The FTC continues its mission to promote competition and protect consumers without resorting to threats or false promises. They encourage public engagement through social media and other platforms for updates and resources.

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