Washington, D.C. — May 22, 2025 — The Federal Trade Commission (FTC) announced today that it has dismissed its lawsuit against PepsiCo, Inc. without prejudice, ending a high-profile case alleging the beverage giant engaged in unlawful price discrimination under the Robinson-Patman Act.
The lawsuit, originally authorized on January 17, 2025 — just three days before President Trump’s inauguration — accused Pepsi of violating Section 5 of the FTC Act and Sections 2(d) and 2(e) of the Robinson-Patman Act. The claims centered on alleged favoritism in the form of discounts or promotional services to certain retailers, practices the FTC said could harm competition by disadvantaging smaller or independent grocers.
In a unanimous 3-0 vote, the Commission opted to dismiss the case, with Chairman Andrew N. Ferguson sharply criticizing the previous Commission’s decision to file the lawsuit.
“The Biden-Harris FTC rushed to authorize this case… in a nakedly political effort to commit this administration to pursuing little more than a hunch,” Ferguson said in a statement. “Taxpayer dollars should not be used for legally dubious partisan stunts.”
Commissioner Melissa Holyoak echoed the chairman’s concerns, emphasizing the need for a disciplined approach to enforcement: “We as a Commission should not have sent [FTC staff] into court to fight a losing battle. Today’s dismissal allows our dedicated staff to focus… where they can do what they do best — protect American consumers.”
Commissioner Mark R. Meador issued a concurring statement in support of the decision.
The FTC’s withdrawal marks a significant retreat from efforts under the previous administration to revive the Robinson-Patman Act, a Depression-era law that has seen limited enforcement in recent decades. Critics have argued the law is outdated and can inadvertently penalize legitimate discounting practices that benefit consumers.
The dismissal does not prevent the FTC from re-filing the case if new evidence emerges, but today’s decision signals a shift toward more cautious and evidence-driven enforcement under the current Commission leadership.
The FTC encourages consumers and businesses to report suspected antitrust violations and learn more about competition and consumer protection by visiting ftc.gov.
Source: https://www.ftc.gov/news-events/news/press-releases/2025/05/ftc-dismisses-lawsuit-against-pepsico
