The US Federal Trade Commission has begun a probe of the pricing practices of Coca-Cola Co. and PepsiCo Inc., according to a person familiar with the probe, following through on promises to resume enforcement of an antitrust law enacted during the administration of President Franklin Roosevelt.
(Bloomberg) — The US Federal Trade Commission has begun a probe of the pricing practices of Coca-Cola Co. and PepsiCo Inc., according to a person familiar with the probe, following through on promises to resume enforcement of an antitrust law enacted during the administration of President Franklin Roosevelt.
The probe, in its preliminary stages, is looking at how Coca-Cola and PepsiCo price their products to major retailers like Walmart Inc. versus smaller competitors, the person said. Other industries are also being examined, the person said.
In a statement, Coke confirmed that it had been contacted by the FTC and said it was complying with the agency’s request.
“The Coca-Cola Company is committed to fair and lawful competition in the marketplace,” the company said, adding that allegations it had engaged in illegal conduct were “unfounded and we are prepared to defend any specific accusations accordingly.”
Pepsi declined to comment and Walmart didn’t immediately respond to a request for comment. The FTC declined to comment. The probe was earlier reported by Politico.
The law, known as the Robinson-Patman Act, bars suppliers from engaging in price discrimination and applies across industries from groceries to gasoline but hasn’t been actively enforced for decades.
The FTC, under Chair Lina Khan, has vowed to resume enforcement in a way that could shake up an industry increasingly dominated by giant retailers such as Walmart, Amazon.com Inc. and Kroger Co. as well as warehouse stores such as Costco Wholesale Corp.
–With assistance from Brendan Case and Brett Pulley.
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