Southern Glazer’s agrees to pricing restrictions in FTC settlement, official says

The largest U.S. liquor distributor, Southern Glazer's, has reached a settlement with the Federal Trade Commission (FTC) to address pricing disparities between its big customers and independent retailers in 26 states, according to a senior FTC official. The agreement bars Southern Glazer's from offering significantly lower prices to large chains such as Walmart, Costco, and Kroger compared to smaller stores in the region, the official revealed on Friday.

The FTC has been increasingly scrutinizing affordability matters this year, particularly as the midterm elections loom. The agency is planning to introduce a new rule to curb misleading grocery and food delivery fees, while also investigating personalized pricing strategies. The settlement with Southern Glazer's aims to foster a more competitive landscape between independent stores and larger chains, which the FTC argued received preferential pricing.

Under the terms of the agreement, Southern Glazer's will face penalties if it continues to provide its major customers in the designated states with substantially better prices than nearby independent retailers for a six-year period. The company's compliance will be monitored by an appointed overseer.

A spokesperson for Southern Glazer's declined to comment on the matter. The company previously denied allegations that its discounts violated the law. The FTC had initiated legal proceedings against Southern Glazer's in 2024, accusing the distributor of breaching the Robinson-Patman Act. This law, enacted in 1936 during the Great Depression, prohibits sellers from offering different prices for the same goods to different buyers.

The FTC's case marked the first enforcement of the Robinson-Patman Act in decades, reflecting the agency's renewed focus on safeguarding small retailers from larger competitors. Current FTC Chair Andrew Ferguson had previously expressed reservations about the lawsuit, citing its potential weaknesses. The act specifically permits variations in pricing when shipping costs differ between customers.