Feb 18 (Reuters) - PepsiCo ( PEP ) and its Frito-Lay unit have

been sued in U.S. court in California by convenience stores that

claim they have been denied the same sales deals offered to

major retailers such as Walmart and Albertsons, causing them to

pay higher prices.

Two California convenience stores filed the proposed class

action on Monday in the federal court in Los Angeles, accusing

PepsiCo ( PEP ) of violating a provision of U.S. antitrust law that bans

price discrimination. The complaint alleged that the companies'

pricing affected "hundreds" of convenience stores in California

and also violated California state competition law.

The lawsuit said PepsiCo's ( PEP ) alleged pricing policies,

favoring major retailers over smaller independent convenience

stores, are illegal under the federal Robinson-Patman Act. That

law can restrict a seller from providing discounts, rebates and

other pricing activities to some buyers, but not all.

Their lawsuit comes about a month after the U.S. Federal

Trade Commission sued PepsiCo ( PEP ) in federal court in New York,

accusing it of providing Walmart with unfair pricing advantages

under the Robinson-Patman Act. PepsiCo ( PEP ) said last month that it

"strongly disputes" the FTC allegations.

PepsiCo ( PEP ) and Frito-Lay did not immediately respond to

requests for comment about Monday's lawsuit.

A lawyer for the plaintiffs, Mark Poe, in a statement on

Tuesday said that Frito-Lay's "discriminatory pricing" resulted

in "millions of consumers" paying higher prices.

The convenience stores are seeking unspecified monetary

damages and a court order stopping the alleged price

discrimination.

Walmart is not a defendant in either the FTC lawsuit or in

the case filed by convenience stores. Walmart did not

immediately respond to a request for comment.

For decades, the federal government had largely not enforced

the Robinson-Patman Act, but the Biden-era FTC revived it.

The lawyers for the convenience stores are separately

pursuing a 2018 lawsuit under that federal law that accuses

5-Hour Energy drink maker Living Essentials of an illegal

pricing scheme.

The case is Alqosh Enterprises Inc and NMRM Inc v. PepsiCo

Inc ( PEP ) and Frito-Lay North America Inc, U.S. District Court,

Central District of California, No. 2:25-cv-01327.

For plaintiffs: Mark Poe and Randolph Gaw of Gaw | Poe

For defendants: No appearances yet

Read more:

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