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Unsealed FTC Complaint Renews Scrutiny of PepsiCo’s Pricing Practices

Law360

A federal court’s decision to unseal the Federal Trade Commission’s complaint against PepsiCo has renewed scrutiny of the company’s alleged pricing practices, following an unsealing effort led by the Institute for Local Self-Reliance and its counsel Amanda Lewis at Cuneo Gilbert Flannery & LaDuca.

In December, U.S. District Judge Jesse M. Furman of the Southern District of New York ordered the largely unredacted release of the FTC’s complaint after a motion by the Institute for Local Self-Reliance, represented by CGFL partner Amanda G. Lewis and Katherine Van Dyck of KVD Strategies. The court rejected arguments that the allegations should remain sealed, emphasizing the importance of public access and finding that the breadth of the redactions “cannot be justified.”

The unsealed complaint alleges that Pepsi violated the Robinson-Patman Act by providing Walmart with significant pricing and promotional advantages not offered to smaller, independent retailers. According to the filing, internal Pepsi communications describe coordinated efforts to maintain a retail “price gap” that favored large chains while forcing competing retailers to pay higher prices.

The FTC filed the enforcement action in early 2025 but abandoned the case several months later, shortly before the court was set to rule on whether the complaint should be unsealed. The agency’s decision to drop the case has since drawn renewed attention in light of the detailed factual allegations and internal communications revealed through the unsealing.

Members of Congress led by Sen. Warren and Rep. Jerry Nadler have since cited the recently unsealed complaint in letters to Pepsi and the FTC, calling the allegations “extensive and meritorious” and urging review of the agency’s decision to drop the enforcement action.

The disclosure has also taken on added significance as related private antitrust litigation continues. Pepsi is currently defending itself against a proposed class action brought by convenience stores in California federal court, as well as a consumer class action in New York, both alleging that Pepsi and major retail partners engaged in anticompetitive pricing practices.

While the FTC’s enforcement action has ended, the unsealed complaint ensures that the allegations, and the evidence underlying them, are part of the public record. The case highlights the importance of transparency in antitrust enforcement and the continuing relevance of the Robinson-Patman Act in modern retail markets.

Read the Law360 article here: https://www.law360.com/articles/2435464?ta_id=1370725&utm_source=targeted-alerts&utm_medium=email&utm_campaign=case-article-alert

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