Convenience stores sue Pepsi and Frito-Lay, alleging price discrimination
Feb 18 (Reuters) - PepsiCo and its Frito-Lay unit have been sued in U.S. court in California by convenience stores that claim they have been denied the same sales deals offered to major retailers such as Walmart and Albertsons, causing them to pay higher prices.
Two California convenience stores filed the proposed class action, opens new tab on Monday in the federal court in Los Angeles, accusing PepsiCo of violating a provision of U.S. antitrust law that bans price discrimination. The complaint alleged that the companies' pricing affected "hundreds" of convenience stores in California and also violated California state competition law.
The lawsuit said PepsiCo's alleged pricing policies, favoring major retailers over smaller independent convenience stores, are illegal under the federal Robinson-Patman Act. That law can restrict a seller from providing discounts, rebates and other pricing activities to some buyers, but not all.
Their lawsuit comes about a month after the U.S. Federal Trade Commission sued PepsiCo in federal court in New York, accusing it of providing Walmart with unfair pricing advantages under the Robinson-Patman Act. PepsiCo said last month that it "strongly disputes" the FTC allegations.
PepsiCo and Frito-Lay did not immediately respond to requests for comment about Monday's lawsuit.
A lawyer for the plaintiffs, Mark Poe, in a statement on Tuesday said that Frito-Lay's "discriminatory pricing" resulted in "millions of consumers" paying higher prices.
The convenience stores are seeking unspecified monetary damages and a court order stopping the alleged price discrimination.
Walmart is not a defendant in either the FTC lawsuit or in the case filed by convenience stores. Walmart did not immediately respond to a request for comment.
For decades, the federal government had largely not enforced the Robinson-Patman Act, but the Biden-era FTC revived it.
The lawyers for the convenience stores are separately pursuing a 2018 lawsuit under that federal law that accuses 5-Hour Energy drink maker Living Essentials of an illegal pricing scheme.
The case is Alqosh Enterprises Inc and NMRM Inc v. PepsiCo Inc and Frito-Lay North America Inc, U.S. District Court, Central District of California, No. 2:25-cv-01327.
For plaintiffs: Mark Poe and Randolph Gaw of Gaw | Poe
For defendants: No appearances yet
Read more:
US sues Pepsi over exclusive discounts to Walmart
FTC revives price discrimination law, sues alcohol distributor
US Supreme Court won't hear 5-Hour Energy drink pricing case
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