Uncle Sam is always watching, even if you’re a major brand like Pepsi or Walmart. The Federal Trade Commission, or what we will call FTC from here on, has filed a major lawsuit against Pepsi for colluding with Walmart to keep prices lower at Walmart stores than any other stores.

The Federal Trade Commission on Friday sued PepsiCo in a last-minute blitz of lawsuits before the end of the Biden administration, alleging that the beverage giant forced many consumers to pay higher prices by giving Walmart 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.

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

The Robinson-Patman Act was passed in 1936, but the federal government stopped enforcing it during the deregulation of the 1980s. The FTC resumed its enforcement in December when it sued Southern Glazer’s, the largest U.S. distributor of wine and spirits.

The FTC has filed a lawsuit against PepsiCo, accusing it of illegal price discrimination by giving preferential pricing to Walmart, disadvantaging other retailers and customers. PepsiCo disputes these allegations,

According to the FTC’s complaint, Pepsi has been providing unfair pricing advantages to one of its largest customers—a major big box retailer—while raising prices for competing retailers and customers. Reuters reports that the retailer is none other than Walmart Inc. WMT , citing a source familiar with the discussions.

Although there are millions of options to choose from, Americans have their preferred soda brands, with Coca-Cola, Dr. Pepper, and Pepsi being among the most popular in terms of generated revenue. Related: PepsiCo makes surprising move with irresistible snack food brand PepsiCo is an American multinational food,

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.