Barron’s Senior Editor Al Root said the stock increased its dividend during the “Barron’s Roundtable.”
The Federal Trade Commission filed a complaint Friday against PepsiCo, Inc.alleging that the company engaged in illegal price discrimination by granting an unnamed “big box” retailer unfair pricing advantages, while raising prices for others.
The FTC alleges that Pepsi has put retailers at a disadvantage for years, systematically favoring a large retailer by offering its customers benefits such as promotional payments, while denying those benefits to its competitors.
Pepsi’s unfair practices have led to inflated prices for American families, while denying competing retailers the opportunity to compete fairly, thereby violating the Robinson-Patman Actaccording to the complaint.
The FTC is suing PepsiCo for allegedly favoring a “bix-box” retailer. (Kennedy Hayes/Fox News)
PEPSICO ADDS MORE CHIPS TO BAGS AFTER “WINDOWS” COMPLAINTS
“When companies like Pepsi give a leg up to big retailers, it tips the scales against small businesses and ultimately inflates product prices. American consumers“, wrote FTC Chairwoman Lina M. Khan in a statement. “The FTC’s action will help ensure that all grocers and other businesses, regardless of their size, can be fairly treated and compete on the merits of their skills, efficiency and talent. “
Under the Robinson-Patman Act, sellers are prohibited from using financial incentives to engage in price discrimination.
Pepsi is being sued by the FTC for allegedly violating the Robinson-Patman Act and granting benefits to an unnamed retailer. (Denise Truscello/Getty Images for LARAS/Getty Images)
PEPSICO Lowers Annual Revenue Forecast, Softer Demand and Weight of Geopolitical Tension
The case comes a month after the commission sued America’s largest wine and spirits distributor, Southern Glazer’s, in December 2024 – alleging it violated the same law.
A substantial portion of the alleged violations were redacted, due to the legal protection afforded to Pepsi and the so-called “preferred” retailer, according to an FTC statement.
Washington DC, Federal Trade Commission, building exterior and sign. (Photo by: Jeffrey Greenberg/Universal Images Group via Getty Images / Getty Images)
The commission said it was in the process of trying to have the redacted information lifted.
“Until Pepsi’s conduct is corrected, the Pepsi Company anti-competitive actions will continue to create an uneven playing field by denying competing retailers, which include mom-and-pop neighborhood grocery stores, the opportunity to compete fairly with Pepsi’s preferred big box retailer customer,” according to the release.
| Teleprinter | Security | Last | Change | Change % |
|---|---|---|---|---|
| DYNAMISM | PEPSICO INC. | 148.25 | +1.71 |
+1.17% |
Walmart, which other media reports say is the favored competitor, told Fox News Digital it did not wish to comment on the suit.
Pepsi did not immediately respond to a request for comment from Fox News Digital.