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Fatima Shahid

FTC Drops Price Discrimination Case Against PepsiCo

21.05.2025 | Federal Trade Commission

The Federal Trade Commission has dismissed a lawsuit against PepsiCo that alleged price discrimination, citing a lack of substantial evidence and concerns over political motivations behind the case.


The Federal Trade Commission (FTC) has voted unanimously to dismiss a lawsuit against PepsiCo, Inc. that was filed in the U.S. District Court for the Southern District of New York. The lawsuit, which was authorized just days before the inauguration of President Trump, accused Pepsi of violating the Robinson-Patman Act (RPA) by engaging in price discrimination through side payments to favored customers.

FTC Chairman Andrew Ferguson criticized the timing and motivation behind the lawsuit, suggesting it was a politically charged move rather than a legitimate legal action. He emphasized that taxpayer resources should not be used for what he termed 'legally dubious partisan stunts' and expressed a commitment to focusing on protecting consumers and maintaining a competitive market.

Commissioner Melissa Holyoak supported the dismissal, highlighting the expertise of the FTC staff and the importance of directing their efforts towards cases with a stronger basis for enforcement. The unanimous vote to dismiss the complaint reflects a consensus among the commissioners that the case lacked sufficient grounds for proceeding.

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