The Federal Trade Commission (FTC) has opened an investigation into major beverage alcohol distributor Southern Glazer’s Wine and Spirits (SGWS). The investigation is focused on practices regarding how wine and liquor are priced and sold around the country.
The FTC is investigating whether or not SGWS violated the Robinson-Patman Act, a 1936 law prohibiting suppliers from offering favorable prices to big retailers at the expense of smaller competitors. The agency is also investigating SGWS under Section 5 of the FTC Act to determine whether the company has engaged any unfair, deceptive, or anti-competitive business practices.
In January, the FTC also opened investigations into Coca-Cola and Pepsi regarding soft drink pricing. FTC investigations can last years and are often closed without any action being taken. [CSP Daily]