How much is your can of Pepsi? According to a recent lawsuit, you may have been overpaying depending on where you bought it.
PepsiCo is a soft drink company with brands that include Pepsi, Diet Pepsi, Mountain Dew, Starry, Bubly, Aquafina, Lipton, PureLeaf, Gatorade, Rockstar, and bottled Starbucks beverages. They are being accused of colluding with Walmart over preferential pricing of the beverages to the retail giant. Three plaintiffs, Martin Gelbspan, Aaron Hinds, and Alexander Govea are suing on behalf of a class of consumers affected by the alleged price-fixing scheme. They brought the action in the Southern District of New York.
What Is the Class Action About?
The plaintiffs are suing Pepsi and Walmart for having a long-term agreement for Pepsi to sell their Pepsi products to Walmart at lower wholesale prices than other stores. Because of this “price gap,” the plaintiffs claim that other nationwide retailers charge higher prices than Walmart and consumers in those stores are overpaying.
For example, the complaint said the cost to the consumer for a case of Pepsi was $8.27 from Walmart but $11.49 from Walgreens. A 13.7-ounce Starbucks Frappuccino bottle was $3.28 from Walmart but $3.49 at Target. Walmart charged $6.97 for eight 12-ounce bottles of blue Gatorade but consumers paid $7.99 at Wegmans.
Additionally, they also allege that Pepsi and Walmart shared detailed retail pricing and sales data to see what other retailers charged. If another retailer undercut Walmart’s retail prices, Pepsi would punish those stores by raising its wholesale prices.
Both Pepsi and Walmart benefit from this agreement. According to Pepsi’s annual SEC filing, Walmart is its biggest customer. The more Walmart sells Pepsi soft drinks, the more Pepsi makes. Walmart, by selling beverages at a discount compared to other retailers, increases its market share.
These actions, if proven true, are violations of antitrust laws aimed at protecting fair competition.
What Are Antitrust Laws?
The Sherman Antitrust Act is an 1890 federal law that prohibits monopolies, price fixing, or conspiracies that restrain competition and free trade. The Clayton Act prohibits price discrimination and contracts for exclusive dealing. The Robinson-Patman Act prohibits predatory price discrimination and large corporations from demanding huge discounts that adversely affect smaller companies. The Antitrust Division of the U.S. Department of Justice and the Federal Trade Commission (FTC) enforce these laws.
In the class action lawsuit, the plaintiffs must prove that Walmart and Pepsi conspired to keep low prices for Walmart but pass higher prices on to grocery stores and other retailers and that consumers were damaged by the higher costs.
Earlier FTC Complaint Was Dropped
This is not the only time Pepsi has been accused of giving better prices to Walmart.
In January 2025, the FTC brought a case against Pepsi for price discrimination, alleging that it gave Walmart preferential treatment in violation of the Robinson-Patman Act. The Robinson-Patman Act prohibits large corporations from demanding huge discounts and predatory pricing discrimination. However, the FTC dropped the case in May 2025, without prejudice, meaning they can bring another claim if new evidence arises.
If the plaintiffs prevail in the class action, they may be entitled to monetary damages and attorney’s fees. If the defendants violated the antitrust laws, they may have to pay treble damages which is three times the amount of damages awarded. Since the class action includes plaintiffs who have purchases a Pepsi product in the past 10 years, that could be be a sizable sum. Pepsi will also have to stop having more favorable pricing practices with Walmart than their retail competitors.
While Pepsi may be in hot water, other competitor beverage companies may be kicking back with “a Coke and a smile.”
Related Resources:
- Find Antitrust Attorneys Near You (FindLaw Attorney Directory)
- How to File a Class Action Lawsuit (FindLaw Learn About the Law)
- Executive Summary of Antitrust Laws (FindLaw Business Operations)
