Outgoing FTC Chair Lina Khan sues Pepsi for violating Robinson-Patman Act.
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Alongsidetheoutgoingadministration’sspateofexecutiveorders andlast-minuterulemaking,theFederalTradeCommission(FTC)suedPepsionFridayforprovidingpromotionalpaymentstoanunnamedbig-boxretailer.TheCommissionclaimsPepsi’sconductviolatestheRobinson-PatmanAct(RPA),a1936lawthatoutlawspricediscrimination.DissentingcommissionersMelissaHolyoakandAndrewFergusonregardthemajority’sargumentastorturedandtendentious.
Inaheavilyredactedstatement,FTCChairLinaKhanallegesthatPepsiunfairlyadvantagesonelargeretailerbyprovidingitwithpromotionalallowancesandservicessuchasadvertisingbudgetsandsignage.KhancontendsthatPepsi’sconductviolatesSections2(d)and(e)oftheRPA,whichprohibittheprovisionof“servicesorfacilitiesconnectedwiththeprocessing,handling,[or]sale…upontermsnotaccordedtoallpurchasersonproportionallyequalterms.”
Inotherwords,shebelievesyoucanviolatetheRPAbyprovidingadvertisingbillboardsforabig-bo