FTC Readies Antitrust Lawsuit Against Largest US Alcohol Distributor for 'Secret Kickbacks'

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.