Syngenta, Corteva Sued By FTC Over ‘Pay to Block’ Scheme (1)

The Federal Trade Commission and 10 states sued agricultural giants Syngenta AG and Corteva Inc. for giving incentives to distributors of pesticides designed to block sales of cheaper generic products.

The FTC claims the two companies operate “loyalty programs” where distributors are paid to keep their purchases of generic versions of six types of pesticides below a certain threshold. The programs lead to higher food prices for consumers, the agency said, since farmers can’t purchase cheaper pesticides.

The agency claims the companies’ programs violate federal antitrust law and consumer protection laws in 10 states.

“By paying off distributors to block ...