The US Federal Trade Commission (FTC) has launched legal action against PepsiCo, accusing the company of engaging in “illegal price discrimination” within soft drinks. According to the FTC’s allegations,

The Federal Trade Commission is suing PepsiCo for alleged price discrimination in the final days of the Biden administration.

The US Federal Trade Commission sued PepsiCo Inc. Friday under a rarely invoked 1930s law called the Robinson-Patman Act that bars price discrimination against retailers.

Company’s conduct has forced competing retailers, including convenience stores, to pay higher prices, agency says

According to the FTC’s complaint, Pepsi has been providing unfair pricing advantages to one of its largest customers—a major big box retailer—while raising prices for competing retailers and customers. Reuters reports that the retailer is none other than Walmart Inc. WMT , citing a source familiar with the discussions.

The commission alleges that the retailer, whose name was redacted in the statement from commissioners, received “unfair pricing advantages” that were not made available to others.

In the suit, the FTC said PepsiCo gave pricing advantages to one large chain but did not give those incentives to smaller retailers.