Well, the FTC is continuing its farewell tour. They just sued Pepsi for allegedly playing favorites with its best deals, leaving smaller retailers high and dry. The charges, you ask? Price discrimination under the Robinson-Patman Act… a law so old, it predates color TV and the invention of Velcro.

Pepsi’s alleged crime is hooking up the big-box guys (hello, Walmart) with unfair pricing perks and promotional bonuses while telling mom-and-pop shops to pound sand. 

According to FTC Chair Lina Khan, this is a case of corporate favoritism that ultimately screws consumers over. Because, let’s face it, the only thing worse than overpaying for a 12-pack of Mountain Dew is realizing your favorite convenience store got it cheaper.

This lawsuit is part of Khan’s swan song as she exits her FTC throne at the end of Biden’s term. And she’s going out like a 90s action hero… fists swinging and explosions in the background. Under her leadership, the FTC blocked the Kroger-Albertsons merger and cracked down on Southern Glazer’s, a wine and spirits distributor, for a similar price-rigging stunt.

But let’s be real, this Pepsi case is spicy. Not hot cheetos spicy, but definitely enough to make Wall Street and soda aisle enthusiasts pay attention. It’s the FTC’s first Robinson-Patman Act suit against a beverage giant in over 20 years. Why now? According to Khan, it’s about leveling the playing field and giving small businesses a chance to compete without getting steamrolled by Big Retail’s buying power.

Pepsi wasted no time putting on its PR armor, calling the allegations “wrong on both the facts and the law.” The soda monopoly essentially accused the FTC of being stuck in a black-and-white TV era, arguing the lawsuit shows a “fundamental misunderstanding of today’s omnichannel retail marketplace.” In other words: This law is older than your grandma, and we don’t think it applies anymore.

The company also claims its promotional payments are standard industry practice, not some evil master plan to bankrupt your local corner store. And let’s not ignore the two dissenting votes from Republican FTC commissioners who called the lawsuit rushed and poorly supported. 

Wall Street shrugged off the news. In fact, Pepsi shares actually ticked up slightly, as if to say, “We’re too big to be scared.” Oh, and to flex, Pepsi announced the completion of its $1.2 billion acquisition of Siete Foods on the same day.

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Stocks.News has positions in Kroger, Albertsons, Pepsi, and Walmart mentioned in article.