The Federal Trade Commission has taken legal action against Southern Glazer’s Wine and Spirits, the largest U.S. distributor of wine and spirits, for allegedly discriminating against small and independent businesses. The FTC claims that Southern Glazer’s is providing discounts and rebates to larger chains that are not available to smaller stores, putting them at a competitive disadvantage. Southern Glazer’s has denied the allegations, stating that they comply with legal requirements and will defend themselves vigorously.
The FTC’s case is based on the rarely enforced 1936 Robinson-Patman Act, which prohibits unjustified price discrimination. The lawsuit seeks to prohibit further price discrimination by Southern Glazer’s.
The fate of the lawsuit under the new Trump administration is uncertain, as two of the FTC commissioners voted against authorizing the lawsuit. Despite this, the FTC is moving forward with the case in an effort to protect small businesses and promote fair competition in the wine and spirits industry.
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