Pepsi, Frito-Lay Sued Over Snack Chip Price Discrimination Claim

PepsiCo Inc. and its Frito-Lay North America Inc. unit are facing a new suit alleging they illegally charged independent convenience stores far higher prices for popular snack chip brands such as Doritos, providing large grocery chain competitors with an unfair advantage.

Lead convenience store plaintiff Alqosh Enterprises Inc. brought claims under the federal Robinson-Patman Act, claiming both Pepsi and Frito-Lay have caused it and similar businesses to lose “tens of millions of dollars in Frito-Lay chips sales” over the preceding four years, according to a complaint filed Monday in the US District Court for the Central District of California.

The ...