FTC Dismisses Lawsuit Against PepsiCo

The Federal Trade Commission today voted to dismiss without prejudice a Robinson-Patman Act (RPA) lawsuit against PepsiCo, Inc. (Pepsi) that was filed in the U.S. District Court for the Southern District of New York. The lawsuit, authorized on January 17, 2025, alleged that Pepsi violated Section 5 of the Federal Trade Commission Act and RPA Sections 2(d) and 2(e), which prohibit firms from engaging in price discrimination by providing side payments, such as discounts or services, to favored customers.

“The Biden-Harris FTC rushed to authorize this case just three days before President Trump’s inauguration in a nakedly political effort to commit this administration to pursuing little more than a hunch that Pepsi had violated the law,” said FTC Chairman Andrew Ferguson. “Taxpayer dollars should not be used for legally dubious partisan stunts. The FTC’s outstanding staff will instead get back to work protecting consumers and ensuring a fair and competitive business environment.” 

FTC Commissioner Melissa Holyoak said, “The staff at the Federal Trade Commission—both economists and lawyers—are highly skilled professionals, and we as a Commission should not have sent them into court to fight a losing battle. Today’s dismissal allows our dedicated staff to focus on bringing enforcement actions where we have reason to believe the law has been violated, and where they can do what they do best—protect American consumers.”

The Commission vote to dismiss the complaint was 3-0. Chairman Andrew N. Ferguson issued a statement joined by Commissioner Melissa Holyoak. Commissioner Mark R. Meador issued a concurring statement.