WASHINGTON, D.C. — The Federal Trade Commission (FTC) has decided to dismiss without prejudice a Robinson-Patman Act lawsuit filed against PepsiCo, Inc., marking the end of a legal effort that alleged price discrimination in violation of federal antitrust laws. The unanimous 3-0 vote on May 22 allows the FTC to redirect its resources toward more promising enforcement actions.
The case, initially filed in January 2025 in the U.S. District Court for the Southern District of New York, accused Pepsi of breaching Section 5 of the FTC Act and Sections 2(d) and 2(e) of the Robinson-Patman Act. The complaint centered on allegations that the company provided undue advantages, such as discounts and additional services, to certain favored customers, thereby engaging in anticompetitive price discrimination.
FTC Chairman Andrew Ferguson criticized the timing and reasoning behind the original lawsuit. “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,” Ferguson stated. He emphasized, “Taxpayer dollars should not be used for legally dubious partisan stunts.”
Commissioner Melissa Holyoak also backed the dismissal, applauding the FTC staff for their expertise and reasoning that resources could be better allocated. “The staff at the Federal Trade Commission—both economists and lawyers—are highly skilled professionals, and we as a Commission should not have sent them into court to fight a losing battle,” Holyoak explained. “Today’s dismissal allows our dedicated staff to focus on bringing enforcement actions where we have reason to believe the law has been violated.”
By dismissing the lawsuit, the FTC aims to concentrate its efforts on actions with stronger legal foundations, reaffirming its mission to protect consumers and ensure fair competition in the marketplace.
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