Often, we regular people don’t even realise the importance of healthy competition in the market, until a case comes along like this PepsiCo FTC Lawsuit. And if you’re not following this case and have no idea what it’s all about, well, earlier this year in 2025, we saw that the U.S. Government sued PepsiCo, and that was done through the Federal Trade Commission or short for FTC. Why exactly is the government suing this company though? Well, it has something to do with how PepsiCo was treating the smaller suppliers of their products in the country, and sure enough, looking at how unfair that was, the FTC decided to sue the company, and now we’re seeing this lawsuit in action.
And at first, it might all sound like a big thing, which it really is, and that’s just because in this very lawsuit, we’re seeing a law being used which is really old, like it is from 1936 actually, and goes by the name the Robinson-Patman Act. If you have no idea about what it is, well, this was passed to make sure that big companies aren’t giving unfair advantage to big distributors in the country, and that is precisely what the FTC is accusing PepsiCo of. So, let’s get to the details and try to make sense of things here.
Some Old-School Law Just Made a Comeback
Alright, why not talk about the Robinson-Patman Act for a second? So, as we already told you, this law is actually from 1936, which makes it about 90 years old now. The main talking point of this law is that no matter if it is a big store or a smaller one, both should get equal or fair prices from suppliers. But the thing is, in the 1980s, this law kinda went cold and the government stopped using it that often. And it is just in 2025 that we’re once again seeing this law in action, and that’s a good thing overall. Government officials taking bold legal steps to enforce longstanding laws isn’t unique to this case—just look at the Pam Bondi New York Immigration Lawsuit, where decades-old immigration enforcement debates have resurfaced in the courtroom.
Sure, back in 2024 as well, we saw this law in action against major alcohol distributors, but since this time it has to be used against a big company like PepsiCo, no wonder this PepsiCo FTC Lawsuit is getting so much attention from mainstream media.
What Exactly Is PepsiCo Accused Of?
Well, as per the details of this case, the FTC has accused Walmart and PepsiCo of some really serious things. Like, the FTC have said so far that it was PepsiCo who went out of their way to give a special deal to Walmart, like giving them a special discount, extra promotional money, better advertising tools, etc. And if you know anything about the fair market practices, you’d certainly say that this right here was an illegal thing, and it sure is illegal as per the Robinson-Patman Act.
Sure enough, because these deals weren’t offered to the smaller distributors of PepsiCo in the country, the FTC had to step in and take care of this thing, and that’s why we’re seeing this lawsuit in action, which is still going on and catching a lot of attention.
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