The Federal Trade Commission, now under Republican control, voted to dismiss a controversial lawsuit against PepsiCo that alleged the company granted unfair pricing advantages to Walmart. Originally filed by the previous Democratic-led commission, the lawsuit invoked the 1936 Robinson-Patman Act, claiming it prohibited such preferential treatment. New FTC Chairman Andrew Ferguson criticized the lawsuit, suggesting it was a politically motivated maneuver made just before the transition to the Trump administration. The decision to dismiss highlights the changing priorities within the commission since the Republican shift in leadership.
Ferguson said Thursday that the PepsiCo lawsuit was a "dubious partisan stunt" and FTC staff had more important work to do.
The lawsuit had relied on the rarely enforced 1936 Robinson-Patman Act, which it said prohibits companies from using promotional incentive payments to favor large customers.
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