A substantial portion of the FTC’s allegations were redacted in the complaint due to the legal protections afforded to both PepsiCo and the retailer, according to the FTC.

The US Federal Trade Commission (FTC) has launched legal action against PepsiCo, accusing the company of engaging in “illegal price discrimination” within soft drinks.

Outgoing agency Chair Lina Khan has filed a raft of measures during her last week in office.

The Federal Trade Commission is suing PepsiCo for alleged price discrimination in the final days of the Biden administration.

The lawsuit, filed on 17 January 2025, contends that PepsiCo's preferential treatment of a retailer constituted a breach of the Robinson-Patman Act (RPA), a legislation designed to protect fair competition by prohibiting anticompetitive price discrimination.

The lawsuit is the second Robinson-Patman Act case filed by the FTC during the Biden administration. In December, the FTC sued alcohol distributor Southern Glazer’s Wine and Spirits LLC for charging mom-and-pop grocers higher prices than large retail chains.

"Today's complaint against Pepsi is wholly deficient, not only because the pleadings fail to state a claim, but because the Majority rushed the case out the door before it had evidence to support the allegations,

The FTC is suing PepsiCo for allegedly rigging the market by offering “unfair pricing advantages” that can contribute to inflation.

According to the FTC’s complaint, Pepsi has been providing unfair pricing advantages to one of its largest customers—a major big box retailer—while raising prices for competing retailers and customers. Reuters reports that the retailer is none other than Walmart Inc. WMT , citing a source familiar with the discussions.

Uncle Sam is always watching, even if you’re a major brand like Pepsi or Walmart. The Federal Trade Commission, or what we will call FTC from here on, has filed a major lawsuit against Pepsi for colluding with Walmart to keep prices lower at Walmart stores than any other stores.