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FTC Settles Southern Glazer's Price Discrimination Case, First Robinson-Patman Action in Decades

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Why it matters

On October 2, 2026, the Federal Trade Commission announced a proposed stipulated order resolving its 2024 Robinson-Patman Act suit against Southern Glazer's Wine and Spirits, the nation's largest wine and spirits distributor. Under the order, Southern would be barred from charging small, independent retailers higher prices for wine and spirits than it charges competing large chains. The order covers 26 states and runs six years under an independent monitor. If the monitor finds future violations, Southern must make direct cash payments to harmed small businesses. The Commission approved the order 2-0. Southern denies the allegations.

The order has no legal force until a federal judge signs it. The FTC filed the case in the U.S. District Court for the Central District of California in December 2024, alleging that Southern charged independents more than chains including Total Wine, Costco and Kroger for identical bottles. Chairman Andrew Ferguson dissented from the decision to sue but did not seek dismissal after becoming Chairman. His statement acknowledges "serious" evidentiary weakness and "only modest quantifiable harm." The remedy is forward-looking because the Supreme Court held in AMG Capital Management v. FTC that Section 13(b) does not allow the FTC to seek monetary relief in court. On October 8, the FTC announced relief in a second Robinson-Patman matter, involving Gildan Activewear and S&S Holdings.

The settlement is the first federal Robinson-Patman resolution in roughly a generation and the first relief the FTC has secured under the Act since 2000. Ferguson has said the statute "remains good law" and that the agency will act on evidence of unlawful discrimination. Because the order sets specific conduct standards, commentators expect it to serve as a template for future cases. Private Robinson-Patman litigation continues in parallel. Reactions are split: the National Grocers Association welcomed the settlement, while the Main Street Competition Coalition argues it addresses only one side of sellers' discrimination against independent businesses. Attorneys should watch whether the court enters the order, how the monitor operates, and whether the standards show up in the next wave of FTC cases.

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