FTC dismisses lawsuit against PepsiCo

The Federal Trade Commission, now under Republican control, has voted to drop a lawsuit against PepsiCo that was initiated by the previous administration led by Biden. Filed in January, the lawsuit accused PepsiCo of providing preferential pricing to Walmart over other vendors, allegedly violating the 1936 Robinson-Patman Act. The Act prohibits companies from using incentives to favor larger customers. The decision to dismiss the lawsuit was criticized by the current FTC chairman, Andrew Ferguson, who labeled it a “partisan stunt.” Former Democratic FTC members who supported the lawsuit have since been removed by the Trump administration. PepsiCo, based in Purchase, New York, had previously denied the allegations.