The Federal Trade Commission (FTC) has secured a significant settlement with Southern Glazer’s Wine and Spirits LLC, the largest distributor of wine and spirits in the U.S. This agreement aims to rectify allegedly illegal price discrimination practices that have hindered small businesses from competing effectively against larger chain retailers.

The settlement encompasses nearly all sales of Southern's wine and spirits to the five largest chain retailers across 26 states. It includes provisions for direct cash payments to affected small businesses if an independent monitor identifies any violations of the settlement order in the future.

According to FTC officials, this settlement represents a major milestone in the enforcement of the Robinson-Patman Act, which was designed to empower small businesses in their competition against larger entities. The FTC emphasizes the importance of maintaining a fair competitive landscape for all businesses, regardless of size.

The settlement resolves a lawsuit initiated by the FTC in 2024, which accused Southern of violating the Robinson-Patman Act by denying small, independent retailers access to discounts and rebates that were available to larger competitors. The complaint highlighted that Southern charged significantly higher prices to independent retailers for identical products compared to large chains, even when located in close proximity.

Under the terms of the proposed stipulated order, Southern will face restrictions on charging higher prices to small retailers than those charged to large retail chains. The order will remain in effect for six years and will be monitored by an independent party to ensure compliance.