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.

The US Federal Trade Commission (FTC) has launched legal action against PepsiCo, accusing the company of engaging in “illegal price discrimination” within soft drinks.

A lawsuit filed by the Federal Trade Commission alleges that food and beverage maker PepsiCo engaged in illegal price discrimination by giving unfair price advantages to one big-box retailer

In a huge lawsuit, the U.S. Federal Trade Commission alleges that food and drink giant Pepsi engaged in pricing tactics unfair to both retailers and consumers.

The US Federal Trade Commission sued PepsiCo Inc. Friday under a rarely invoked 1930s law called the Robinson-Patman Act that bars price discrimination against retailers.

The Federal Trade Commission is suing PepsiCo for alleged price discrimination in the final days of the Biden administration.

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.

Company’s conduct has forced competing retailers, including convenience stores, to pay higher prices, agency says

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.