In a recent lawsuit, the Federal Trade Commission charges the biggest wine and spirits distributor in the United States with engaging in unlawful price discrimination, offering big-box retailers like Costco and Kroger significantly lower prices than those given to independent liquor stores, convenience stores, and local grocery stores.
In announcing the lawsuit on Thursday, the FTC stated that Southern Glazer’s Wine and Spirits, the distributor, is the tenth largest privately held corporation in the United States and will generate approximately $26 billion in revenue from sales to retail customers in 2023.
According to the complaint, Southern denied smaller companies access to rebates and discounts, making it more difficult for them to compete with big national and local chain retailers.
According to a statement from FTC Chair Lina Khan, communities suffer when local businesses are pressured by unfair pricing practices that favor huge chains, leaving Americans with fewer options and paying higher prices.
According to Khan, the legislation mandates that companies of all sizes must be able to compete on an equal basis. The FTC’s action today will help protect fair competition, cut costs, and restore the rule of law, despite enforcers’ decades-long disregard for this congressional obligation.
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