Shares of PepsiCo ($PEP) were in the spotlight on Friday after the Federal Trade Commission announced it plans to sue the consumer giant on allegations of price discrimination, with retail sentiment turning cautious.

The US Federal Trade Commission (FTC) has launched legal action against PepsiCo, accusing the company of engaging in “illegal price discrimination” within soft drinks.

A substantial portion of the FTC’s allegations were redacted in the complaint due to the legal protections afforded to both PepsiCo and the retailer, according to the FTC.

The lawsuit is the second Robinson-Patman Act case filed by the FTC during the Biden administration. In December, the FTC sued alcohol distributor Southern Glazer’s Wine and Spirits LLC for charging mom-and-pop grocers higher prices than large retail chains.

The Federal Trade Commission on Friday filed a lawsuit against PepsiCo, Inc., alleging the company engaged in illegal price discrimination by giving an unnamed "large, big box" retailer unfair pricing advantages,

The lawsuit, filed on 17 January 2025, contends that PepsiCo's preferential treatment of a retailer constituted a breach of the Robinson-Patman Act (RPA), a legislation designed to protect fair competition by prohibiting anticompetitive price discrimination.

Outgoing agency Chair Lina Khan has filed a raft of measures during her last week in office.

The Federal Trade Commission filed a lawsuit against PepsiCo ( NASDAQ: PEP) on Friday for alleged illegal price discrimination. The FTC alleges that the food and beverage giant has been providing unfair pricing advantages to a large,

Pepsi denied the allegations and said the FTC's lawsuit is wrong, both factually and legally. "PepsiCo strongly disputes the FTC's allegations, and the partisan manner in which the suit was filed.

The FTC is suing PepsiCo for allegedly rigging the market by offering “unfair pricing advantages” that can contribute to inflation.

The agency claims the soda giant gave “unfair” pricing advantages to a larger retailer, forcing consumers to pay more at competing stores. Pepsi “strongly disputes” the allegations.

A lawsuit filed by the Federal Trade Commission alleges that food and beverage maker PepsiCo engaged in illegal price discrimination by giving unfair price advantages to one big-box retailer.