On May 22, 2025, the Federal Trade Commission (FTC) voluntarily dismissed its case against PepsiCo alleging price discrimination in violation of the Robinson-Patman Act. Federal Trade Commission v. PepsiCo, Inc., 1:25-cv-00664, (S.D.N.Y.).
As previously reported in the Franchise Memorandum, the FTC filed a sealed complaint in a federal court in New York on January 12, 2025, alleging that PepsiCo engaged in illegal price discrimination by providing a large retailer with unfair pricing advantages. Federal enforcement of the Robinson-Patman Act has been rare and the case was particularly notable because it was filed days before the end of the Biden administration. Incoming FTC Chairman Ferguson and Commissioner Holyoak issued a joint statement in support of the dismissal. They reiterated their earlier dissents claiming that the suit was purely political and that there was no evidence to support the complaint’s most important allegations. This decision signals that, despite urging by some commentators in both parties, the new administration is unlikely to expand enforcement of the Robinson-Patman Act.
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