The highest Democrats are imposing information on Pepsi about its pricing, re-pressing information on major consumer brands as the ongoing inflation rate continues to exist on the new Republican administration.
The letter was sent Sunday night by Massachusetts Sen. Elizabeth Warren, New Jersey Sen. Cory Booker and New York Rep. Jerry Nadler, and was seen by NBC News to ask Pepsi to explain the alleged difference in price to the price of large boxes. It asked the beverage and snack giant to respond by May 25 and provide details about the charges its products to retailers and whether the company or its subsidiaries offer priority discount or advertising opportunities for large chains.
"Pepsi's actions may have damaged the ability of local couple stores to compete with large grocery chains, resulting in higher prices and fewer consumer choices," they wrote in the letter.
A Pepsi spokesperson did not immediately respond to a request for comment.
The letter restored the focus of the Biden era, focusing on price. Democrats accuse companies of greed and claiming anti-competitive behavior to promote higher consumer prices, while Republicans are more focused on trade. They accuse foreign countries of "depriving" Americans and using tariffs as a solution.
The Federal Trade Commission sued Pepsi, the last working day of President Joe Biden's administration, accusing snack and beverage giants of "rigging soft drink competition" allegedly giving a large retailer who wanted to be named a more favorable retailer than its competitors.
The commission cites the 1936 law that has largely departed from law enforcement since the relaxation of regulation in the 1980s, accusing Pepsi of violating rules to avoid offering different prices or promotional resources to competent buyers. The FTC used the same regulations in December to sue a major liquor publisher for allegedly discriminating prices, which it said favors large grocery chains over smaller competitors.
An FTC spokesman pointed out Monday that Chairman Andrew Ferguson had earlier objected to the lawsuit filed against Pepsi in January, when he was a commissioner for the agency. Ferguson called the complaint a "cynical attempt to kidnap the hands of the incoming Trump administration" and criticized it as "partisan politics, pure and simple" and based on "just one-off".
"This is the hardest claim of primitive political power that I witnessed during my tenure as a commissioner," he wrote at the time.
A Pepsi spokesperson did not immediately comment.
Pepsi delayed regulator charges in January, saying the lawsuit was filed in a "partisan manner" and vowed to fight it in court. "Pepsi Cola's practice is in line with industry norms and we do not prefer certain customers by offering discounts or promotional support to certain customers," it said in a statement at the time.
Power on the FTC has changed dramatically in just a few months since the filing of a price discrimination case.
President Donald Trump fired two Democratic members of the agency in March, a move that both removed officials have been criticized as illegal. Some Republican lawmakers are working to transfer committee power over antitrust affairs to the Justice Department. The idea is backed by billionaire Trump adviser and Tesla CEO Elon Musk, who is now shrinking his role and guiding the senior costs of the entire federal government.
"I hope strong antitrust enforcement" added: "Monopoly is not good for innovation," Ferguson, who succeeded Biden-appointed Lina Khan as FTC chairman in January, told CNBC in April. But he also called for deregulation, saying: "Transaction traffic is part of the way this country is developing."
"The Biden administration is very suspicious about mergers and acquisitions," Ferguson said, but "I'm not at all. I'm a pro-minister, I'm innovating and growing myself, and we have to achieve that balance."
More and more democratic pressures are increasingly concerned that increasing costs and economic uncertainty threaten consumer spending. Pepsi is one of the most recent major companies in the latest economic turmoil related to Trump's ongoing trade war.
Pepsi recently reported higher sales in North America in the first quarter, where food and beverage volumes fell by 1% and 3%, respectively.
Executives told investors late last month that volatility in global trade could raise its costs.