For years, PepsiCo handed Walmart massive secret discounts and promotions that no other retailer could touch, and the Federal Trade Commission (FTC) says it was straight-up illegal price discrimination that crushed small grocers.
Details of these special pricing arrangements only became public this week after a previously sealed FTC complaint was finally made public.
The case itself isn’t new: The FTC filed the complaint in January 2025 but voluntarily dropped it in May, without prejudice—meaning it could potentially refile later. At the time of filing (and dismissal), the agency kept the favored retailer’s identity redacted from public view. The newly unsealed version of the complaint, released following a court order, finally names Walmart.
In the filing, the FTC describes a relationship in which PepsiCo provided Walmart with payments, allowances, and services that weren’t matched for other retailers. The agency pointed to family-run groceries, convenience stores, mid-sized chains, and independent retailers as examples of businesses affected by the pricing gap.
Walmart reportedly responded by focusing on the outcome of the case, noting the FTC’s voluntary dismissal and reiterating its commitment to negotiating tough deals for customer savings.
The release of the complaint has also renewed attention around the decades-old Robinson-Patman Act, which prohibits various forms of price discrimination. The FTC’s complaint specifically alleged violations of Sections 2(a) and 2(d) of the Act, which cover both discriminatory pricing of goods and discriminatory provision of allowances and services to competing retailers.
The National Grocers Association (NGA), which represents independent grocers targeted by such practices, said in a statement to the press that the unsealed filing “highlights longstanding concerns among independent community grocers about anticompetitive practices in the marketplace
“Independent grocers are not asking for special treatment, only a level playing field, which ultimately supports local jobs, strengthens competition, and ensures consumers continue to have choice and value at the grocery store,” the group added.
Sources: NGA, FTC Complaint (Unredacted), Food Dive