Why The Federal Trade Commission Is Investigating Pepsi and Coca-Cola

Coke or Pepsi, which one do you prefer? This has been a question that people have asked themselves for years.

As pricing has increased with food and drinks, soda lovers have been questioning the pricing of their favorite beverage as well.

Would you not purchase Pepsi or Coke if the pricing goes up or would you challenge the idea that something maybe wrong about it?

Coke and Pepsi Are Under Investigation, But Why?

According to Politico,

" Coca-Cola and PepsiCo are under preliminary investigation at the Federal Trade Commission over potential price discrimination in the soft drink market as the agency looks to revive a decades-old, but largely dormant law banning the practice,"

 

What Is The Federal Trade Commission?

The Federal Trade Commission was founded by Woodrow Wilson. They help protect consumers and competition. This can be done by preventing any unfair practices, deceptive matters and more. 

The Federal Trade Commission is investigating Coke and Pepsi.

What Is The Law?

According to the Federal Trade Commission, The Robinson-Patman Act started in 1914 when it first started to prohibit different forms of discrimination for pricing. 

It can also

" provide some measure of protection to small independent retailers and their independent suppliers from what was thought to be unfair competition from vertically integrated, multi-location chain stores."

 

SEE ALSO: Why Ronzoni Is Discontinuing Pastina

How Does This Relate To Pepsi And Coke?

According to Reuters,

"The pricing strategies of both companies are being scrutinized under the Robinson-Patman Act, the report said. The U.S. antitrust law prevents large franchises and chains from engaging in price discrimination against small businesses."

The Federal Trade Commission reached out to retailers in hopes to gather information and data on how the beverages were purchased. After an investigation, its said that Walmart is not a target.

Have you noticed a difference in pricing when purchasing Coke and Pepsi? Share your thoughts with us below.