The Federal Trade Commission in a new lawsuit accuses the largest U.S. distributor of wine and spirits of illegal price discrimination that gave large chains — among them Costco, Kroger and Total Wine & More — much better prices than those offered to neighborhood grocery stores, convenience shops and independent liquor stores. The distributor, Southern Glazer’s Wine and Spirits, is the tenth largest privately held company in the United States, generating about $26 billion in revenues from sales to retail customers in 2023, the FTC said Thursday in announcing the suit. The suit alleges the distributor violated the Robinson-Patman Act by providing “steep discounts” without any market justification to a certain set of retailers. “When local businesses get squeezed because of unfair pricing practices that favor large chains, Americans see fewer choices and pay higher prices — and communities suffer,” said FTC Chair Lina Khan in a statement. “The law says that businesses of all sizes should be able to compete on a level playing field,” Khan said.

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Persons: Robinson, ”, Lina Khan, ” Khan, Pernod Ricard, Silver Tequila, Jim Beam Bourbon, Mark Whiskey Organizations: Federal Trade Commission, U.S, Costco, Kroger, Southern, “ Enforcers, CNBC, Central, Central District of, Jameson, Bacardi U.S.A, Bacardi, Diageo, Smirnoff, Beam Suntory Locations: United States, Southern, U.S, Central District, Central District of California