Lina Khan, chair of the Federal Trade Commission, speaks during the 2024 CNBC CEO Council Summit in Washington, D.C. on June 4, 2024.
The Federal Trade Commission is preparing an antitrust lawsuit against the largest U.S. alcohol distributor, Southern Glazer's Wine and Spirits, two sources familiar with the matter told CNBC.
But one source said the commission is likely to allege that Southern Glazer's has been providing "secret kickbacks" to large retail customers and violating the 1936 Robinson-Patman Act.
Florida-based Southern Glazer's Wine and Spirits distributes alcohol for over 7,000 brands in 44 states.
Under the FTC's interpretation, the Robinson-Patman Act is not a wholesale ban on price discrimination and could allow volume discounts.
Persons:
Lina Khan, Robinson
Organizations:
Federal Trade Commission, CNBC, Summit, Southern, Politico, Forbes
Locations:
Washington ,, Southern, Florida