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FTC Abandons Price Discrimination Case Against PepsiCo, Tells Main Street Businesses: “You’re on Your Own” [1]

['Paige Feldmann', 'Following News That The Federal Trade Commission', 'To Dismiss Its Case Against Pepsico For Its Alleged Violations Of The Robinson-Patman Act', 'The American Economic Liberties Project Released The Following Statement.', 'The Trump', 'Administration Continues To Kick Small Businesses In The Teeth', 'Meritless Dismissal Is A Win For Monopolists', 'Billionaires', 'A Slap In The Face To Consumers Struggling With High Food Prices', 'Small Businesses Struggling With Ever-Shrinking Margins.']

Date: 2025-05-22 21:27:11+00:00

Washington, D.C. — Following news that the Federal Trade Commission has voted 3-0 to dismiss its case against PepsiCo for its alleged violations of the Robinson-Patman Act, the American Economic Liberties Project released the following statement.

“The Trump-Vance Administration continues to kick small businesses in the teeth,” said Lee Hepner, Senior Legal Counsel at the American Economic Liberties Project. “This meritless dismissal is a win for monopolists and billionaires, and a slap in the face to consumers struggling with high food prices and small businesses struggling with ever-shrinking margins. Adding insult to injury, the agency dropped the case just one day before the parties were due to justify extensive redactions in the complaint, denying the public the ability to review the facts and judge the merits for themselves. This is a corporate pardon for Walmart and PepsiCo, and the Commission is betraying the public’s right to accountability for a well–pleaded case of price discrimination.”

Although the Robinson-Patman Act was passed by Congress in 1936 and was never repealed, it has not been enforced by federal agencies like the FTC and DOJ for nearly 40 years, until the Biden administration’s FTC—under Chair Lina Khan—brought cases against PepsiCo and Southern Glazer’s to protect smaller businesses suffering from price discrimination. The Department of Justice and the Federal Trade Commission ceased enforcing the Robinson-Patman Act in the 1970s claiming, without any real evidence, that the law harmed consumers. As a result, small businesses are now paying wholesale prices that are higher than the retail prices offered by power buyers like Amazon and Walmart, in flagrant violation of the law and without recourse, pushing them out of the marketplace and harming small businesses and entrepreneurs.

Learn more about the Robinson-Patman Act through our fact sheet.

Read our full 2022 report on the Robinson-Patman Act here.

Learn more about Economic Liberties here.

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[1] Url: https://www.economicliberties.us/press-release/ftc-abandons-price-discrimination-case-against-pepsico-tells-main-street-businesses-youre-on-your-own/

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