The FTC alleges that Pepsi's special deals with a big-box retailer disadvantage smaller competitors, leading to inflated prices for consumers and unfair competition.
FTC Chair Lina Khan stated, "When firms like Pepsi give massive retailers a leg up, it tilts the playing field against small firms and ultimately inflates prices for American consumers."
Pepsi argued that their practices are consistent with industry norms and that they do not unfairly favor any customers with discounts.
The lawsuit targets the power shift in the grocery sector, examining how large retailers like Walmart influence pricing models and competition dynamics.
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