FTC Sues Pepsi for Skewing Soft Drink Prices

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The Federal Trade Commission sued the second-largest food company in the world, PepsiCo, Inc. (Pepsi), on the grounds it has conducted illegal price discrimination by giving large one customer unfair pricing advantages while increasing prices for everyone else. The complaint charges that Pepsi violates the Robinson-Patman Act (RPA) by giving one large retailer, WalMart, special pricing advantages and benefits such as promotional payments. RPA, sections 2(d) and 2(e) prohibit sellers from creating price discrimination through advertising and promotional allowances that give an advantage to large customers over small businesses.

Click here for more details from the FTC announcement.