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WASHINGTON — The U.S. Federal Trade Commission on Thursday dropped its case accusing PepsiCo of price discrimination that favored Walmart, and criticized former Chair Lina Khan for rushing the case out.
The lawsuit filed in New York had accused the soft drink manufacturer of violating the Robinson-Patman Act, a law that went largely unenforced for decades by the federal government.
The case was filed in New York on Jan. 17, days before President Donald Trump took office.
"Taxpayer dollars should not be used for legally dubious partisan stunts," FTC Chairman Andrew Ferguson said.
PepsiCo said the company "has always and will continue to provide all customers with fair, competitive, and nondiscriminatory pricing, discounts and promotional value."
A representative for Walmart did not immediately respond to a request for comment.
The FTC had claimed PepsiCo's practices fed high consumer prices by placing other retailers ranging from large grocery chains to independent convenience stores at a disadvantage to Walmart.
Khan called the dismissal of the case "a gift to giant retailers as they gear up to hike prices," in a post on social media platform X.
