The Federal Trade Commission is preparing an antitrust lawsuit against Southern Glazer's Wine and Spirits, the largest alcohol distributor in the US. The FTC alleges that Southern Glazer's has been providing "secret kickbacks" to large retail customers, violating the 1936 Robinson-Patman Act, which prohibits discriminatory pricing. The Robinson-Patman Act bans companies from offering better prices to one buyer over another for the same commodity. Still, the FTC says price discrimination must interfere with competition to be illegal. In 2022, startup alcohol distributor Provi sued Southern Glazer's alleging it conspired with another distributor to boycott Provi and block its ability to compete.
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00:00It's Benzinga, and here's what's on the block.
00:02The Federal Trade Commission is preparing an antitrust lawsuit against Southern Glazers
00:06Wine and Spirits, the largest alcohol distributor in the U.S.
00:10The FTC alleges that Southern Glazers has been providing secret kickbacks to large retail
00:14customers, violating the 1936 Robinson-Pattman Act, which prohibits discriminatory pricing.
00:20The Robinson-Pattman Act bans companies from offering better prices to one buyer over another
00:24for the same commodity, but the FTC says price discrimination must interfere with competition
00:29to be legal.
00:30In 2022, startup alcohol distributor Pro-V sued Southern Glazers, alleging it conspired
00:35with another distributor to boycott Pro-V and block its ability to compete.
00:39For all things money, visit Benzinga.com.