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Pepsico, Coca-Cola Under FTC Probe For Price Discrimination

  • Politico, Tuesday, January 10, 2023 6:56 PM

"Beverage giants Coca-Cola and PepsiCo are under preliminary investigation at the Federal Trade Commission over potential price discrimination in the soft drink market as the agency looks to revive a decades-old, but largely dormant law banning the practice," according to Politico. At issue is a 1936 law "that prohibits suppliers from offering better prices to large retailers at the expense of their smaller competitors."

The companies’ pricing strategies are being scrutinized under an obscure law known as the Robinson-Patman Act, the people said. The law prohibits suppliers from offering better prices to large retailers at the expense of their smaller competitors. The largely dormant 1936 law is aimed at promoting a level playing field between small retailers and large chain stores.

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