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PepsiCo is facing a class action lawsuit over allegedly offering preferential pricing to some retailers, a violation of US anti-trust laws.
Filed in the US District Court for the Southern District of New York last week by plaintiff Michael Giannasca, the complaint accuses PepsiCo of breaching the Robinson-Patman Act (RPA), a 1936 law designed to prevent large buyers from securing discriminatory discounts that could harm competition.
Giannasca, who operates an Italian restaurant in Massachusetts, claims PepsiCo provided promotional allowances to the chain store Walmart that were not extended to other retailers. While Walmart is referenced extensively in the filing, it is not named as a defendant.
The complaint alleges violations of sections 2A and 2D of the RPA, which prohibit price discrimination that may lessen competition or create a monopoly. Mr Giannasca is seeking compensatory damages, injunctive relief, interest and legal costs.
The RPA was brought into law during the Great Depression. It prohibits sellers from charging different prices to different buyers of goods that are of ‘like grade and quality’ where the effect of said pricing ‘may substantially lessen competition.’
Section 2A addresses direct price discrimination, while Section 2E prohibits the provision of promotional allowances to one buyer without offering equal terms to others.
This is the second time the beverage giant has been named in a suit regarding discriminatory pricing practices. The US Federal Trade Commission sued the company in a similar lawsuit in January 2025, also citing favouring of Walmart over other retailers, but this was dropped in May.