Pepsi hurt small businesses by giving big-box retailer financial advantages, the FTC claims

The commission alleges that the retailer, whose name was redacted in the statement from commissioners, received “unfair pricing advantages” that were not made available to others.

The Federal Trade Commission on Friday sued PepsiCo for allegedly engaging in illegal price discrimination with a large retailer. The commission alleges that the retailer, whose name was redacted in the statement from commissioners, received “unfair pricing advantages” that were not made available to others. A source familiar with the case told CNN that the retailer is Walmart. A Walmart spokesperson told CNN that the company did not have a comment about the lawsuit. The big-box retailer “consistently” received promotional payments and advertising from PepsiCo, which owns major brands including Frito lay, Quaker and Gatorade, the FTC alleged. The benefits disadvantaged family-owned grocers, local convenience stores and even larger chains, according to the commission. “When firms like Pepsi give massive retailers a leg up, it tilts the playing field against small firms and ultimately inflates prices for American consumers,” said FTC Chair Lina Khan in the commission’s announcement. The 1936 Robinson-Patman Act, which prohibits advertising and promotional allowances to favor large customers over small businesses, was cited in the FTC’s announcement.