The Federal Trade Commission today voted to dismiss without prejudice a Robinson-Patman Act (RPA) lawsuit against PepsiCo, Inc. (Pepsi) that was filed in the U.S. District Court for the Southern District of New York.
The lawsuit, authorized on January 17, 2025, alleged that Pepsi violated Section 5 of the Federal Trade Commission Act and RPA Sections 2(d) and 2(e), which prohibit firms from engaging in price discrimination by providing side payments, such as discounts or services, to favored customers.
“The Biden-Harris FTC rushed to authorize this case just three days before President Trump’s inauguration in a nakedly political effort to commit this administration to pursuing little more than a hunch that Pepsi had violated the law,” said FTC Chairman Andrew Ferguson.
“Taxpayer dollars should not be used for legally dubious partisan stunts.
Today’s dismissal allows our dedicated staff to focus on bringing enforcement actions where we have reason to believe the law has been violated, and where they can do what they do best—protect American consumers.”
An action under the Robinson-Patman Act (RPA) against PepsiCo, Inc. was dismissed without prejudice by the Federal Trade Commission today. filed in the United States (Pepsi). S. District Court for New York’s Southern District. Authorized on January 17, 2025, the lawsuit claimed that Pepsi had violated RPA Sections 2(d) and 2(e) and Section 5 of the Federal Trade Commission Act, which forbid businesses from engaging in price discrimination by giving favored customers side payments, like discounts or services.
According to FTC Chairman Andrew Ferguson, the Biden-Harris FTC hurried to approve this case just three days prior to President Trump’s inauguration in an overtly political attempt to bind this administration to investigating a mere suspicion that Pepsi had broken the law. “Legal partisan stunts shouldn’t be funded with taxpayer money. Instead, the exceptional employees of the FTC will return to their duties of safeguarding consumers and maintaining an equitable and competitive business environment. “.”.
Attorneys and economists at the Federal Trade Commission are highly qualified professionals, and as a Commission, we shouldn’t have sent them to court to fight a losing battle,” stated FTC Commissioner Melissa Holyoak. Today’s dismissal frees up our hardworking employees to do what they do best—protect American consumers—by concentrating on pursuing enforcement actions in cases where we have good reason to suspect a violation of the law. “”.
