Outgoing FTC Chair Lina Khan sues Pepsi for violating Robinson-Patman Act.

The commission alleges that the retailer, whose name was redacted in the statement from commissioners, received “unfair pricing advantages” that were not made available to others.

The Federal Trade Commission is suing Pepsi, alleging it has rigged competition by offering unfair pricing deals to a big retailer at the expense of smaller rivals, resulting in higher costs for shoppers.

The Robinson-Patman Act was passed in 1936, but the federal government stopped enforcing it during the deregulation of the 1980s. The FTC resumed its enforcement in December when it sued Southern Glazer’s, the largest U.S. distributor of wine and spirits.

The Federal Trade Commission sued PepsiCo on Friday for offering preferential pricing to a large retailer, whom a source familiar with the matter confirmed was Walmart.

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.

The FTC said the activity forces many Americans to pay inflated prices for PepsiCo products unless they shop at Walmart. “When firms like Pepsi give massive retailers a leg up, it tilts the ...

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.

"Today's complaint against Pepsi is wholly deficient, not only because the pleadings fail to state a claim, but because the Majority rushed the case out the door before it had evidence to support the allegations,

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 practices fed high consumer prices by placing at a disadvantage other retailers, from large grocery chains to independent convenience stores, the FTC said. “PepsiCo strongly disputes the FTC ...