The Federal Trade Commission (FTC) has unanimously voted to dismiss without prejudice its Robinson-Patman Act lawsuit against PepsiCo. The case, filed in the U.S. District Court for the Southern District of New York, was authorized on January 17, 2025, and accused PepsiCo of violating Section 5 of the FTC Act and Sections 2(d) and 2(e) of the RPA by providing discriminatory discounts and services to select customers. All three commissioners supported the dismissal.
FTC Chairman Andrew Ferguson criticized the previous administration’s decision to authorize the lawsuit shortly before the presidential transition, calling it a “political effort” based on weak legal grounds. He stated, “Taxpayer dollars should not be used for legally dubious partisan stunts. The FTC’s outstanding staff will instead get back to work protecting consumers and ensuring a fair and competitive business environment.” FTC Commissioner Melissa Holyoak echoed this view, praising the professionalism of the FTC’s staff and supporting the decision to end a case unlikely to succeed. With this dismissal, the Commission aims to redirect its efforts toward cases where there is a stronger basis for legal action. The FTC emphasized its commitment to using agency resources to uphold competition and consumer protection laws.
