The Federal Trade Commission (FTC) yesterday voted to dismiss without prejudice a Robinson-Patman Act (RPA) lawsuit against PepsiCo Inc. (Pepsi) that was filed in the U.S. District Court for the Southern District of New York, according to a press release from the FTC.

The release stated that the lawsuit, authorized on January 17, 2025, “alleged that Pepsi violated Section 5 of the Federal Trade Commission Act and RPA Sections 2(d) and 2(e), which prohibit firms from engaging in price discrimination by providing side payments, such as discounts or services, to favored customers.”

The Robinson-Patman Act, a federal law that took effect in 1936, makes it illegal for product suppliers to discriminate against some competitor businesses in their pricing, but has seldom been enforced.

The Commission’s vote to dismiss the complaint was 3-0. Chairman Andrew N. Ferguson issued a statement joined by Commissioner Melissa Holyoak. Commissioner Mark R. Meador issued a concurring statement.

FTC Commissioner Melissa Holyoak said, “The staff at the Federal Trade Commission—both economists and lawyers—are highly skilled professionals, and we as a Commission should not have sent them into court to fight a losing battle. Today’s dismissal allows our dedicated staff to focus on bringing enforcement actions where we have reason to believe the law has been violated, and where they can do what they do best—protect American consumers.”