By Sabela Ojea

The Federal Trade Commission has filed suit against PepsiCo for allegedly offering price advantages to a big box retailer while raising prices for competitors and customers.

The snacks and beverage maker, which is the second-largest food company in the world, engaged in illegal pricing practices that for years provided unfair advantages that negatively affected businesses from large grocery chains to local convenience stores.

"Pepsi's unfair practices have led to inflated prices for American families, while denying competing retailers the ability to fairly compete," the FTC said on Friday.

PepsiCo said that it strongly dispute's the FTC allegations and will present its case in court. The lawsuit was "wrong on the facts and the law," the company said in a statement.

"PepsiCo's practices are in line with industry norms and we do not favor certain customers by offering discounts or promotional support to some customers and not others," PepsiCo said.

The big box retailer, which wasn't named in the complaint, was provided with promotional payments and allowances by PepsiCo, the FTC said. They were also offered advertising and promotional tools that weren't provided to other retail competitors.

"The FTC's action will help ensure all grocers and other businesses-no matter the size-can get a fair shake and compete on the merits of their skill, efficiency, and talent," FTC Chair Lina Khan said.

PepsiCo wasn't immediately available for comment.

Write to Sabela Ojea at sabela.ojea@wsj.com; @sabelaojeaguix

(END) Dow Jones Newswires

January 17, 2025 11:45 ET (16:45 GMT)

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