Convenience Stores File Suit In US Court Against PepsiCo And Frito-Lay For Unfair Pricing
Convenience Stores File Suit In US Court Against PepsiCo And Frito-Lay For Unfair Pricing
Seek unspecified monetary damages and an end to the discrimination
Two California convenience stores have filed a lawsuit in the US District Court, Central District of California, against PepsiCo and its unit Frito-Lay for violating antitrust laws through discriminatory pricing practices.
They complained of being denied the same sales deals offered to major retailers such as Walmart and Albertsons, forcing hundreds of smaller stores to pay higher prices.
The lawsuit claimed PepsiCo's alleged pricing policies were illegal under the federal Robinson-Patman Act, which restricts a seller from providing discounts, rebates and other pricing activities to selective buyers.
Mark Poe, a lawyer for the plaintiffs, stated, “The discriminatory pricing resulted in millions of consumers paying higher prices.”
The convenience stores sought unspecified monetary damages and a court order to stop the alleged price discrimination.
For decades, the government did not enforce the Robinson-Patman Act, but during the presidency of Joe Biden, the FTC revived it.
Meanwhile, the lawyers for the convenience stores are separately pursuing a 2018 lawsuit that accuses 5-Hour Energy drink maker Living Essentials of an illegal pricing scheme.
Recently, the Federal Trade Commission (FTC) sued PepsiCo in a New York court, accusing it of similar trade practices.
However, PepsiCo disputed the allegations.
