FTC Sues Southern Glazer’s for Alleged Price Discrimination Favoring Large Chains

The lawsuit revives the Robinson-Patman Act, claiming the alcohol distributor's pricing practices harm small businesses and consumers.

The Federal Trade Commission (FTC) has filed a lawsuit against Southern Glazer’s Wine and Spirits, the largest U.S. alcohol distributor, for alleged illegal price discrimination since at least 2018.
The FTC accuses Southern Glazer’s of offering steep discounts and rebates to large chains like Costco, Kroger, and Total Wine & More, while charging significantly higher prices to small independent retailers.
The case marks the first enforcement of the Robinson-Patman Act in over 20 years, a law designed to prevent anti-competitive price discrimination and protect smaller businesses.
Southern Glazer’s, which accounts for one-third of U.S. alcohol distribution and generated $26 billion in revenue in 2023, denies the allegations and plans to contest the lawsuit.
The FTC argues that these practices stifle competition, harm local businesses, and limit consumer choice, with Chair Lina Khan emphasizing the need for fair competition across all business sizes.