PepsiCo, Walmart hit with class action over alleged price-fixing

By Mike Scarcella

WASHINGTON, Dec 16 (Reuters) - PepsiCo PEP.O and Walmart WMT.O have been accused in a new consumer lawsuit in federal court in New York of orchestrating a decade-long price-fixing scheme that inflated the cost of Pepsi soft drinks at retailers nationwide.

The proposed class action filed on Monday alleged that the two companies entered an agreement that gave Walmart preferential wholesale pricing on Pepsi products while forcing other retailers to pay inflated prices, in violation of antitrust law.

The plaintiffs contend the arrangement eliminated price competition, and harmed consumers with higher prices. The lawsuit is seeking class action status on behalf of millions of Pepsi consumers.

“Pepsi and Walmart collectively make more money when they neutralize price competition and coordinate pricing,” the lawsuit said.

Pepsi said in a statement that the company "continues to operate in compliance with applicable laws and remains committed to providing all customers with fair, competitive, and non-discriminatory pricing, discounts and promotional value, regardless of size or channel."

Walmart in a statement said it was aware of the litigation and that it remains "committed to negotiating on behalf of our customers so we can deliver value and everyday low prices."

An attorney for the consumers declined to comment.

The lawsuit comes after the U.S. Federal Trade Commission in May dropped a lawsuit brought during Joe Biden's presidency that accused Pepsi of violating the Robinson-Patman Act, which was enacted in 1936 and targets discriminatory pricing practices. Pepsi was the only defendant in the agency's lawsuit.

Pepsi, according to the proposed class action, offered preferential prices and other incentives to Walmart to maintain a “price gap” favoring the retail giant while withholding similar advantages from other retailers. Pepsi allegedly raised wholesale prices for other retailers, the lawsuit said.

Pepsi denied any wrongdoing in the FTC's case.

The proposed class covers all U.S. consumers who purchased Pepsi soft drinks from non-Walmart retailers since January 2015.

The case is Martin Gelbspan et al v. PepsiCo Inc and Walmart Inc, U.S. District Court, Southern District of New York, No. 7:25-cv-10397

For plaintiffs: Blake Yagman of Schonbrun Seplow Harris Hoffman & Zeldes

For Pepsi and Walmart: No appearances yet

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