The United States Is Suing Pepsi Over Alleged Preferential Discounts To This Huge Retailer

The U.S. Federal Trade Commission (FTC) is suing PepsiCo based on the soda company offering preferential pricing to a large retailer, which a source has identified as Walmart (per Reuters). "Preferential pricing" refers to pricing discrimination, which is illegal and violates the Robinson-Patman Act (RPA).

Essentially, Pepsi offered a large retailer — whether or not it's Walmart — lower pricing, which meant raising prices for other retailers (including grocery chains and small independent stores). The complaint from the FTC also alleges that Pepsi offers the large retailer other benefits, such as promotional payments (incentivizing retailers to promote a product), that it does not offer to its other customers. Ultimately, the individual consumer pays more for Pepsi products because of their pricing discrimination. Add this (alleged) tactic to the list of things you didn't know about popular soda brands.

Have Pepsi and Walmart responded?

Pepsi has refuted the claims. In a statement, the company said, "PepsiCo strongly disputes the FTC's allegations and the partisan manner in which the suit was filed." Meanwhile, Walmart — which isn't directly named in the suit — has not commented publicly on the matter and declined a request for comment to Reuters.

Along with filing the suit, the FTC has also spoken publicly about its claims. The FTC Chair, Lina M. Khan, said, "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." Khan continued by noting that she hopes the suit will help keep things fair between all businesses, big and small, and that businesses can "compete on the merits of their skill, efficiency, and talent."

If what the suit alleges is true, then Pepsi prices may be higher at most retailers than they need to be — it may be time to switch to the best cola brand we've tasted, which actually isn't Coke or Pepsi. Or, simply switch to drinking Coca-Cola for now, which also has many other uses other than just drinking it