Aug 6 (Reuters) - Beverage giant PepsiCo ( PEP ) has
been accused in a merchant lawsuit in U.S. court of illegally
giving some retailers better price deals than others, in a case
mirroring one that President Donald Trump's Federal Trade
Commission abandoned.
The proposed class action was filed on Tuesday in the
federal court in Manhattan by the operator of an Italian
restaurant alleging anticompetitive and unfair business
practices over the sale of Pepsi soft drinks.
The lawsuit alleges Pepsi is violating a provision of
antitrust law that forbids sellers from playing favorites with
pricing and discount opportunities, creating an uneven playing
field where one merchant pays a higher price than another for
the same products.
Pepsi has provided payments and allowances to Walmart ( WMT ),
according to the lawsuit, that are not also made available to
competing retailers.
The restaurant in its lawsuit said Pepsi "places an unfair
and oppressive burden on other stores and retailers who are not
provided the same advantages" as the retail giant.
Pepsi and attorneys for the restaurant owner did not
immediately respond to requests for comment. Walmart ( WMT ) also did
not immediately respond to a similar request. Walmart ( WMT ) is not a
defendant.
The lawsuit dusts off an old, rarely used law called the
Robinson-Patman Act, which was enacted in 1936.
The Biden administration's FTC sought to rejuvenate that
law, which curtails discriminatory pricing practices. The FTC
sued Pepsi in late January, but the second Trump administration
in May dropped the lawsuit.
In doing so, Trump-appointed FTC Chairman Andrew Ferguson in
a statement criticized the lawsuit's timing, which came just
days before the end of the Biden administration. He called the
litigation a "nakedly political effort to commit this
administration to pursuing little more than a hunch that Pepsi
had violated the law."
The FTC did not immediately respond to a request for comment
about the new private lawsuit.
The new lawsuit seeks unspecified monetary damages on behalf
of a nationwide class of Pepsi purchasers that was estimated to
be in the thousands.
The case is Michael Giannasca v. PepsiCo Inc ( PEP ), U.S. District
Court, Southern District of New York, No. 1:25-cv-06440.
For plaintiff: Thomas Burt of Wolf Haldenstein Adler Freeman
& Hertz, and Joseph Marchese of Bursor & Fisher
For defendant: No appearance yet
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