PepsiCo, Frito-Lay win US court order barring class action in snack pricing lawsuit

By Mike Scarcella

WASHINGTON, Feb 19 (Reuters) - PepsiCo PEP.O and its Frito-Lay unit have persuaded a California federal judge to block convenience-store owners from pursuing a proposed class action claiming the snack giant favors big retailers over smaller competitors in its wholesale pricing.

U.S. District Judge Mónica Ramírez Almadani in Santa Ana said in her ruling on Wednesday that the convenience stores failed to meet a requirement of federal law that proposed class members have suffered the same harm.

The lawsuit, filed last year, sought to represent thousands of stores in California and accused PepsiCo of violating the Robinson-Patman Act, a provision of U.S. antitrust law that bans price discrimination.

In her ruling, Almadani said the law requires highly individualized, transaction‑specific proof that the plaintiffs had not provided. The judge pointed to other court orders finding lawsuits raising price discrimination “require individualized proof at every step.”

Almadani’s ruling was a setback for the individual plaintiffs but she did not dismiss the lawsuit, which remains pending. The judge also said she would allow the stores to amend their class-action claims and refile them. Class actions can deliver larger recoveries at lower cost than individual lawsuits.

PepsiCo and Frito-Lay did not immediately respond to requests for comment.

Mark Poe, a lead attorney for the plaintiffs, said they intend to file an amended lawsuit that "will identify numerous ways in which Frito systematically discriminated against its independent customers, while systematically favoring the national chains."

The lawsuit said independently-owned California convenience stores have lost tens of millions of dollars in Frito-Lay chips sales due to PepsiCo's alleged price discrimination.

PepsiCo and Frito-Lay, in their bid to strike the plaintiffs’ class claims, told the court that the convenience stores’ allegations “necessarily would require thousands of individualized inquiries into the unique circumstances of each class member.”

They said allowing the case to move ahead as a class action “will add only complexity and confusion.”

The case is Alqosh Enterprises et al v. PepsiCo Inc et al, U.S. District Court, Central District of California, No. 2:25-cv-01327-MRA-JDE.

For plaintiffs: Mark Poe and Randolph Gaw of Gaw | Poe

For defendants: Stephen Weissman and Jay Srinivasan of Gibson, Dunn & Crutcher

Read more:

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Convenience stores sue Pepsi and Frito-Lay, alleging price discrimination