> At a Glance
> – A class action filed Dec. 15 claims PepsiCo and Walmart conspired to keep Pepsi drinks cheaper at Walmart and pricier everywhere else since 2015
> – Plaintiffs say Walmart got lower wholesale prices, exclusive rebates, and data perks withheld from competing stores
> – The suit covers all Pepsi-brand drinks-Pepsi, Gatorade, Mountain Dew, Bubly, Pure Leaf, Starbucks bottled, and more-bought outside Walmart
> – Why it matters: Shoppers who bought Pepsi products anywhere else may have overpaid for years and could join the proposed class seeking damages
A new federal lawsuit accuses PepsiCo and Walmart of running a decade-long scheme that kept Pepsi soda prices artificially low at Walmart while inflating them at rival stores nationwide.
The Allegations
Filed Dec. 15 in the Southern District of New York, the complaint claims the two corporate giants used their market power to suppress price competition on popular beverages.
Plaintiffs Martin Gelbspan, Aaron Hinds, and Alexander Govea allege Pepsi sold drinks to Walmart at steeply discounted wholesale rates while charging higher prices to other retailers. The arrangement allegedly included:
- Exclusive promotional payments and allowances
- Data-sharing services not offered to competitors
- Threats to cut discounts if other stores tried to beat Walmart’s retail prices
Internal Pepsi emails cited in the suit reportedly call the Walmart pricing deal a “foundational commitment.”
Who’s Affected
The proposed nationwide class covers anyone who bought qualifying Pepsi products outside Walmart from January 1, 2015, to present. Separate state subclasses are sought in:
- California
- Florida
- Massachusetts
- New York
Products named include Pepsi, Diet Pepsi, Mountain Dew, Starry, Bubly, Aquafina, Gatorade, Rockstar, Lipton, Pure Leaf, and bottled Starbucks drinks.
Company Responses
Walmart told News Of Los Angeles:
> “We are aware of the litigation. We remain committed to negotiating on behalf of our customers so we can deliver value and everyday low prices.”
PepsiCo stated:
> “While we cannot comment on pending litigation, we continue to operate in compliance with applicable laws and remain committed to providing all customers with fair, competitive, and non-discriminatory pricing, discounts, and promotional value, regardless of size or channel.”
Legal Stakes
The suit charges violations of the Sherman Antitrust Act, multiple state antitrust laws, and unjust enrichment. Relief sought includes:
- Class certification
- Monetary damages (trebled under federal law)
- Injunction to halt the alleged conduct
- A jury trial
Key Takeaways
- Plaintiffs claim Walmart’s price edge on Pepsi drinks wasn’t competition-it was contracted collusion
- Millions of consumers who shopped at grocery, convenience, or big-box rivals may have overpaid since 2015
- The case could reshape how suppliers negotiate discounts with mega-retailers
If certified, the class action could expose both companies to significant financial liability and force broader changes in beverage pricing practices.
