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Diving overview:
- The Federal Trade Commission alleges that Walmart received unfair pricing benefits from PepsiCo, according to a newly released complaint in the government’s lawsuit against PepsiCo that was dismissed earlier this year.
- The FTC alleged that PepsiCo violated the Robinson-Patman Act by offering Walmart lower average retail prices than its competitors. “To satisfy Walmart, Pepsi provided promotional fees, benefits and services to Walmart while failing to provide similar benefits on proportionately equal terms to Walmart’s competitors,” the complaint states.
- The public complaint comes as grocers are closely watching Walmart’s grocery momentum.
Dive Insights:
The lawsuit filed in January He was dismissed without any prejudice. Last May, the FTC Commission found PepsiCo at the center of price-fixing allegations. The public complaint, released Thursday, provides a more detailed picture of the players the FTC is keeping an eye on.
In the complaint, the FTC alleged that PepsiCo’s preferential pricing and promotions for Walmart “disadvantage retailers that compete with Walmart in the resale of Pepsi soft drinks throughout the United States, including family-owned neighborhood grocers, regional convenience stores, mid-level grocery stores, and independent retailers.”
“While we do not comment on others’ cases, it is worth noting that the FTC voluntarily dismissed this case,” Walmart said in an emailed statement to Grocery Dive. “We are committed to negotiating on behalf of our customers to ensure we deliver value and everyday low prices.”
The FTC initially Walmart was not named publicly. The retailer involved in the lawsuit, the National Grocers Association, said: I’ve been calling Walmart for a long time When advocating for stronger antitrust regulations, such as the Robinson-Patman Act.
The NGA said in a statement Thursday that the complaints made public “highlight the long-standing concerns of independent community grocers about anti-competitive practices in the marketplace.”
The Grocery Industry Association, which represents independent grocers, urged the FTC to continue enforcing the Robinson-Patman Act.
“Independent grocers are not asking for special treatment, but rather a level playing field that ultimately supports local jobs, increases competition, and ensures consumers continue to have choice and value when it comes to grocery stores,” the NGA said in a statement.
