FTC Dismisses Lawsuit Against PepsiCo

On Thursday, the Federal Trade Commission, led by Republicans, decided to dismiss a lawsuit aimed at PepsiCo.

This legal action, which was initiated in January, accused PepsiCo of giving Walmart an unjust pricing edge, thereby harming other suppliers and consumers. The lawsuit invoked the seldom-enforced 1936 Robinson Patman Act.

At the time of the lawsuit’s filing, Lina Khan, a Democrat, was serving as the FTC’s chairman. She, along with Democratic commissioners Rebecca Slaughter and Alvaro Bedoya, supported the lawsuit, while Republican members Andrew Ferguson and Melissa Holiork opposed it.

Shortly after the lawsuit was lodged, President Trump assumed office, resulting in a wave of resignations, including that of Kern. Additionally, Trump removed Bedoya and another member in March, which led to legal actions from them claiming their dismissals were unlawful.

Now-chairman Andrew Ferguson characterized the lawsuit against PepsiCo as a “suspected partisan stunt,” stating that FTC staff had more pressing matters to address.

In his statement, Ferguson noted, “The Biden Harris FTC hastily approved this case just three days prior to President Trump’s inauguration, seemingly to push this administration into pursuing what appears to be an unfounded claim against Pepsi.”

On Thursday, PepsiCo was contacted for comments regarding the lawsuit. The New York-based firm previously asserted that it had not been offering preferential discounts or promotional support to some clients while withholding it from others.