(PatrioticPost.com)- The Federal Trade Commission (FTC) is reportedly investigating whether Coca-Cola and Pepsi broke federal antitrust law by charging different prices for the same drinks.
According to reports, the FTC is looking at how Pepsi and Coca-Cola set their prices in light of the Robinson-Patman Act. The law is an antitrust law from 1936. It was made to keep small stores competitive with larger ones by making it illegal for suppliers to sell the same product to larger buyers at a better price.
It is part of a larger plan by FTC Chair Lina Khan and other Democrats on the commission, like new FTC Commissioner Alvaro Bedoya, to take strong antitrust action. Bedoya has called for antitrust enforcement under the Robinson-Patman Act to be returned.
The last time the FTC used the Robinson-Patman Act was in 2000 when it sued the spice company McCormack for selling its spices and seasonings at different prices. The law was once called the Magna Carta of small business. Law enforcement often used it in the middle of the 20th century.
A Justice Department report from 1977 showed that the Robinson-Patman Act would no longer be enforced based on the antitrust doctrine of consumer welfare, which says that enforcement should be lax to keep prices low.
Media sources have claimed that the investigation into Coke and Pepsi is still in its early stages. Statista says Coca-Cola is the biggest soft drink company in the U.S., with a 46% market share. Pepsi is second, with a 26% market share.
A company spokesperson for The Coca-Cola Company stated that it wants to compete in the market fairly and legally. Any claim that the Company sold or illegally distributed its products is false. They are ready to defend themselves against any specific claims.
Pepsi did not respond to media requests when asked for comment. A spokesperson for the FTC declined to respond.
The soda wars used to be between the soda giants. Now, the battle is with consumers.