Pepsi and Walmart are being accused in a newly filed federal lawsuit of steering soda prices in a way that allegedly costs millions of shoppers more money at stores outside Walmart.
The proposed class action, filed December 15 in the U.S. District Court for the Southern District of New York, claims PepsiCo and Walmart maintained an unlawful pricing arrangement that favored Walmart while inflating prices for Pepsi-branded beverages sold by competing retailers. Plaintiffs Martin Gelbspan, Aaron Hinds, and Alexander Govea allege the conduct distorted competition across the soft drink market for years.
According to the complaint, the alleged scheme dates back to at least January 2015. Plaintiffs claim Pepsi sold its products to Walmart at lower wholesale prices than those offered to other retailers. That difference, described in the filing as a calculated “price gap,” allegedly allowed Walmart to keep shelf prices lower while rivals were unable to compete.
The lawsuit further alleges Pepsi provided Walmart with exclusive promotional payments, allowances and data-sharing services not extended to other retailers. When competing stores attempted to lower prices, Pepsi is accused of raising wholesale costs or limiting discounts, effectively discouraging price competition.
The filing cites internal Pepsi communications and references to Federal Trade Commission findings, including emails that reportedly described the Walmart pricing arrangement as a “foundational commitment.”
“We are aware of the litigation,” Walmart says in a statement shared with PEOPLE. “We remain committed to negotiating on behalf of our customers so we can deliver value and everyday low prices.”
PepsiCo told USA Today it cannot comment on pending litigation but stated that it “continues to operate in compliance with applicable laws and remains committed to providing all customers with fair, competitive, and non-discriminatory pricing, discounts, and promotional value, regardless of size or channel.”
The proposed class includes consumers who purchased Pepsi products outside Walmart since 2015. Plaintiffs are seeking class certification, monetary damages, injunctive relief, and a jury trial, alleging violations of federal and state antitrust laws.
