By Jody Godoy
Oct 2 (Reuters) – Southern Glazer’s, the largest US liquor distributor that carries name brands like Bacardi and Smirnoff, has agreed not to charge small retailers significantly more than nearby chain stores to settle a US Federal Trade Commission case, a senior FTC official said on Friday.
The FTC has ramped up its focus on affordability issues this year as the midterm elections approach. The agency is considering a new rule to bar misleading grocery and food delivery fees and probing personalized pricing practices.
The Southern Glazer’s settlement is aimed at leveling the playing field between independent stores and bigger chains like Walmart, Costco and Kroger, which the FTC alleged had received better prices.
For six years, Southern Glazer’s will be subject to penalties if it gives its biggest customers in 26 states significantly better prices than independent stores nearby, the official said. The settlement will be overseen by a monitor, the official added.
A Southern Glazer’s spokesperson did not immediately respond to a request for comment. The company has previously denied that its discounts violate the law.
The FTC sued Southern Glazer’s in 2024 accusing it of violating the Robinson-Patman Act, a law aimed at protecting small retailers from bigger competitors. The FTC targeted discounts exclusively available to large customers including grocery chains like Kroger and alcohol retailer Total Wine & More.
The case was the first time in decades the FTC had enforced the RPA, which was a priority for former FTC Chair Lina Khan.
Current FTC Chairman Andrew Ferguson had voted against suing Southern Glazer’s, saying that while the agency should enforce the RPA, the case was weak.
Passed in 1936 during the Great Depression, the Robinson-Patman Act prohibits a seller from offering different prices for the same goods to different buyers. The law has a few exceptions, such as when shipping costs are higher for one customer than another.
(Reporting by Jody Godoy in New York; Editing by Chizu Nomiyama )
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