FOR IMMEDIATE RELEASE
For media inquiries, please contact: Reggie Rucker, ILSR Communications Director
The FTC has chosen to ignore a clear Congressional directive and “abandon communities that depend on fair competition to maintain access to essential goods and services,” says Stacy Mitchell
WASHINGTON, D.C. (May 23, 2025) — Stacy Mitchell, co-executive director of the Institute for Local Self-Reliance (ILSR) and author of Big-Box Swindle (2006), made the following statement condemning the Federal Trade Commission’s (FTC) decision to dismiss its lawsuit against PepsiCo for giving — reportedly Walmart — unfair price advantages at the expense of competing retailers:
“The FTC’s decision to dismiss the case against PepsiCo represents a fundamental abandonment of the commission’s responsibility to ensure a level playing field for small businesses. The Robinson-Patman Act (RPA) exists precisely to prevent large, dominant corporations from using their market power to squeeze out independent competitors through discriminatory deals. By walking away from this case, the FTC is green-lighting the very practices that are destroying main streets across America.
“We hear from independent grocers struggling to compete because suppliers offer their chain competitors deals they can’t access. This is particularly devastating in rural communities, where the closure of a local grocery store doesn’t just eliminate competition — it eliminates access to food entirely. Our research shows time and again how price discrimination by major suppliers, like PepsiCo, enables retail giants to undercut local competitors, leading to devastating consequences for rural and underserved communities.
“The dismissal fits a troubling pattern of weakened antitrust enforcement that has allowed unprecedented corporate concentration across the American economy. The Robinson-Patman Act has been severely underenforced for decades, contributing to the decline of independent businesses and the rise of retail monopolies.
“Notably, the FTC’s 3-0 vote to dismiss occurred without a full bench of commissioners. Commissioners Alvaro Bedoya and Rebecca Kelly Slaughter, who had previously advocated for robust RPA enforcement and supported the original authorization of this case, were removed by President Trump. A fully seated bipartisan Commission ensures the integrity of the Commission’s work. Without it, the agency is left without a voice to shed light on dissenting views and speak to the strength of the case and evidence.
“Chairman Ferguson’s characterization of the case as a ‘partisan stunt’ reveals a fundamental misunderstanding of the FTC’s bipartisan mandate to promote competition. Enforcement of RPA has support across party lines. By dismissing the PepsiCo case, the FTC has chosen to ignore this clear Congressional directive and abandon communities that depend on fair competition to maintain access to essential goods and services. We call on Congress to investigate the FTC’s decision.
“The Institute for Local Self-Reliance will continue advocating for robust antitrust enforcement and policies that support locally-owned businesses, competitive markets, and thriving communities.”
Helpful Resources
- “The Great Grocery Squeeze.” The Atlantic. (Stacy Mitchell, December 2024) — How a federal policy change in the 1980s created the modern food desert
- The Policy Shift That Decimated Local Grocery Stores (Stacy Mitchell, November 2024)
- The Case for Reviving the Robinson-Patman Act (Katy Milani and Stacy Mitchell, August 2024)
- “The Real Reason Your Groceries Are Getting So Expensive.” New York Times. (Stacy Mitchell 2023)
- Fixing the Food Gap: Antitrust Action and Grassroots Solutions to Check Dollar Stores and Rebuild Local Grocery Stores (ILSR Event with FTC Commissioner Bedoya and community leaders, May 2023)
- Boxed Out: How Big Retailers are Flexing Their Supply Chain Power to Kill Off Small Businesses (ILSR report by Stacy Mitchell and Ron Knox, September 2022)
- Walmart’s Monopolization of Local Grocery Markets (Stacy Mitchell, June 2019) — In 43 metropolitan areas and 160 micropolitan markets, Walmart captures 50 percent or more of grocery sales, our analysis of 2018 spending data found.
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