The Federal Trade Commission filed suit against him on Friday PepsiCo, Inc.alleged that the company engaged in illegal price discrimination by giving unfair price advantages to an unnamed “big, big box” retailer and raising prices for others.

FTC alleges that Pepsi has undermined retail sales for years, consistently favoring one major retailer by offering its customers benefits such as promotional payments, while denying those benefits to competitors.

Pepsi's unfair practices led to inflated prices for American families, while denying competing retailers the ability to compete fairly, violating contract terms. Robinson-Patman Lawaccording to the complaint.

The FTC is suing PepsiCo for favoring a “bix-box” retailer. (Kennedy Hayes/Fox News)

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“When firms like Pepsi open up to giant retailers, it tilts the playing field against smaller firms and ultimately inflates prices. American consumers“, FTC Chairwoman Lina M. Khan wrote in a statement. “The FTC's action will help ensure that all grocers and other businesses — regardless of size — get a fair shake and compete on the basis of their skills, efficiency and talent.”

Under the Robinson-Patman Act, sellers are prohibited from using financial incentives to engage in price discrimination.

Pepsi is being sued by the FTC for allegedly violating the Robinson-Patman Act and favoring an unnamed retailer. (Denise Truscello/Getty Images for LARAS/Getty Images)

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The case comes a month after the commission sued Southern Glazer's, the largest US wine and spirits distributor, in December 2024 for allegedly violating the same law.

According to a statement from the FTC, a significant portion of the alleged violations were corrected thanks to legal protections granted to Pepsi and the allegedly “preferred” retailer.

Washington DC, Federal Trade Commission, building exterior and sign. (Photo: Jeffrey Greenberg / Getty Images / Universal Pictures Group via Getty Images)

The commission said it was trying to remove the redacted information.

“Until Pepsi straightens its behavior, Pepsi anti-competitive actions It will continue to create an uneven playing field, denying competing retailers, including family-owned neighborhood grocery stores, the chance to compete fairly with Pepsi's favored large, big-box retail customer,” the statement said.

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Walmart, which said other publications are a favored competitor, told Fox News Digital it did not want to comment on the suit.

Pepsi did not immediately respond to Fox News Digital's request for comment.