Dive Brief:
- The Federal Trade Commission claimed Walmart received unfair pricing advantages from PepsiCo, according to the newly unsealed complaint for the government’s lawsuit against PepsiCo that was dismissed earlier this year.
- The FTC alleged that PepsiCo violated the Robinson-Patman Act by giving Walmart a lower average retail price than its competitors. “To keep Walmart happy, Pepsi provides Walmart with promotional payments, allowances, and services while failing to make similar benefits available to Walmart’s competitors on proportionally equal terms,” the FTC’s complaint stated.
- The unsealed complaint comes as grocery players keep a watchful eye on Walmart’s grocery momentum.
Dive Insight:
The lawsuit, which was filed in January and dismissed without prejudice by the FTC Commission in May, placed PepsiCo at the center of price rigging allegations. The unsealed complaint, which was made public on Thursday, provides a fuller picture of the players that the FTC had its eye on.
In the complaint, the FTC alleged that PepsiCo’s preferential pricing and promotions for Walmart “disadvantaged retailers who compete with Walmart in the resale of Pepsi soft drinks across the United States, including family-owned neighborhood grocery stores, local convenience stores, mid-tier grocers, and independent retailers.”
“We don’t comment on others’ cases, but it’s worth noting that the FTC voluntarily dismissed this one,” Walmart said in an emailed statement to Grocery Dive. “We remain committed to negotiating on behalf of our customers so we can deliver value and everyday low prices.”
While the FTC initially did not publicly name Walmart as the retailer involved in the lawsuit, the National Grocers Association has long called out Walmart when advocating for stronger antitrust regulations such as the Robinson-Patman Act.
In a statement on Thursday, the NGA said the unsealed complaint “highlights longstanding concerns among independent community grocers about anticompetitive practices in the marketplace.”
The grocery industry association, which represents independent grocers, continued its call for FTC enforcement of the Robinson-Patman Act.
“Independent grocers are not asking for special treatment, only a level playing field, which ultimately supports local jobs, strengthens competition, and ensures consumers continue to have choice and value at the grocery store,” the NGA said in the statement.
