Pepsi Gave Walmart Special Discounts, Biden-Era FTC Alleged
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Article content(Bloomberg) — PepsiCo Inc. offers Walmart Inc. special product promotions and discounts that it doesn’t offer to any other retailers, according to a Biden-era antitrust complaint that was unsealed by a court. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentDetails of a now-dismissed Federal Trade Commission complaint were made public by a judge Thursday in response to a request by an antimonopoly advocacy group, the Institute for Local Self-Reliance. The agency revealed that Walmart was the retailer that received special advantages in a filing Thursday. Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentThe FTC in January voted 3-2 to file the lawsuit against PepsiCo, alleging the company violated the law by charging small retailers higher prices than they do for beverages sold to a large multinational chain store. The agency didn’t publicly disclose the name of the retailer in the original complaint, and the Trump FTC in May dismissed the case.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentIn the unsealed complaint, the FTC said PepsiCo recognizes Walmart as its “most important customer,” citing a 2023 regulatory filing where it told investors losing the company as a customer would have a “material adverse effect” on its business.Article contentPepsiCo provides Walmart with promotional payments, allowances and services “to keep Walmart happy,” according to the complaint, “while failing to make similar benefits available to Walmart’s competitors on proportionally equal terms.” Article contentAccording to the FTC complaint, that conduct disadvantages smaller retailers including convenience stores that compete with Walmart to sell Pepsi and other soft drinks, including Mountain Dew, and Rockstar Energy drinks.Article contentThe FTC lawsuit was filed just days before Donald Trump was sworn in as president. The agency, now staffed entirely by Republicans after Trump fired its two Democrats, said in May that it was dismissing the case because it was poorly conceived.Article contentArticle contentAt the time, FTC Chair Andrew Ferguson said in a statement that “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.’Article contentWalmart said in a statement that the company remains “committed to negotiating on behalf of our customers so we can deliver value and everyday low prices,” noting that the FTC voluntarily dismissed the case.Article contentPepsiCo didn’t immediately respond to request for comment, but had denied wrongdoing when the case was filed. The FTC also didn’t immediately respond to a request for comment on the unsealed complaint.Article contentThe FTC’s complaint alleged that PepsiCo violated a rarely invoked 1930s law called the Robinson-Patman Act that bars price discrimination against retailers. Biden’s FTC Chair Lina Khan advocated for greater use of the law, arguing that its under-enforcement has harmed smaller retailers. Article contentEarlier this week PepsiCo said it would reduce prices in its key brands as part of an agreement with activist investor Elliott Investment Management.Article contentThe case is Federal Trade Commission v PepsiCo Inc., 25-cv-664, US District Court, Southern District of New York.Article content—With assistance from Kristina Peterson and Jaewon Kang.Article contentTrending CRA penalized taxpayer for repeated failure to report income Personal Finance Who is Mark Wiseman? 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