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Report: FTC Considering Lawsuit Against Southern Glazer’s

June 4, 2024

The Federal Trade Commission is considering a lawsuit against Southern Glazer’s Wine & Spirits, according to reporting in Politico, with the government investigating whether the distribution giant used discriminatory price schemes when selling wine and spirits to retailers. The potential lawsuit would be brought under the Robinson-Patman Act, a 1936 law written to ensure that retailers are not subject to unfair pricing compared to their competition.

Though once a common source of government lawsuits, the Robinson-Patman Act has not been the basis of an FTC lawsuit in over two decades. According to Politico, the government is still considering whether or not to file the lawsuit, which could be filed in federal court or the FTC’s own administrative court.

The FTC opened its investigation into Southern Glazer’s and the industry’s wider pricing and sales practices last year, examining a wide range of practices relating to bulk discounts, rebates, promotions, marketing, and other areas.—Shane English

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