Southern Glazer’s, the largest liquor distributor in the United States, has agreed to pricing restrictions to settle a Federal Trade Commission case over alleged price discrimination against smaller retailers.
Under the proposed settlement, the company will face penalties for six years if it gives significantly better prices to major customers than to nearby independent retailers in 26 states. An independent monitor will oversee compliance.
The FTC had accused Southern Glazer’s of providing more favourable prices and discounts to large chains, including Walmart, Costco and Kroger, while smaller retailers faced higher prices for the same products. The agency sued the company in 2024 under the Robinson-Patman Act, a 1936 law addressing certain forms of price discrimination.
Southern Glazer’s has denied violating the law and has not admitted wrongdoing as part of the settlement. The company said it does not expect the proposed order to materially change its business or pricing practices.
The case marks the FTC’s first enforcement of the Robinson-Patman Act in decades and comes as the agency increases scrutiny of pricing practices affecting consumers and smaller businesses.
The settlement could require Southern Glazer’s to adjust how it applies discounts across its customer base while preserving pricing differences that are supported by legitimate cost difference
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