Two California C-Stores Sue PepsiCo

The stores claim that PepsiCo and Frito-Lay violated the Robinson-Patman Act.

February 20, 2025

Two convenience stores in California have sued PepsiCo and its Frito-Lay unit, claiming that they have been denied the same sales deals offered to major retailers such as Walmart and Albertsons, causing them to pay higher prices, reported Reuters.

“Two California convenience stores filed the proposed class action on Monday in the federal court in Los Angeles, accusing PepsiCo of violating a provision of U.S. antitrust law that bans price discrimination. The complaint alleged that the companies' pricing affected ‘hundreds’ of convenience stores in California and also violated California state competition law,” the outlet reported.

The lawsuit said PepsiCo’s alleged pricing policies, favoring major retailers over smaller independent convenience stores, are illegal under the federal Robinson-Patman Act. That law can restrict a seller from providing discounts, rebates and other pricing activities to some buyers, but not all, according to Reuters.

This lawsuit comes after the U.S. Federal Trade Commission sued PepsiCo in federal court in New York, accusing it of providing Walmart with unfair pricing advantages under the Robinson-Patman Act.

A lawyer for the plaintiffs, Mark Poe, in a statement on Tuesday said that Frito-Lay’s "discriminatory pricing" resulted in "millions of consumers" paying higher prices.

The convenience stores are reportedly seeking unspecified monetary damages and a court order stopping the alleged price discrimination.

“For decades, the federal government had largely not enforced the Robinson-Patman Act, but the Biden-era FTC revived it,” wrote Reuters.

In December, the Federal Trade Commission (FTC) sued the largest U.S. distributor of wine and spirits—Southern Glazer’s Wine and Spirits LLC (Southern)—alleging the company violated the Robinson-Patman Act, “harming small, independent businesses by depriving them of access to discounts and rebates, and impeding their ability to compete against large national and regional chains,” according to a press release from the FTC.