The Federal Trade Commission announced Friday that it has settled its long‑running antitrust case against Southern Glazer’s Wine and Spirits, the country’s biggest distributor of wine and spirits. The lawsuit, filed in December 2024, alleged that Southern Glazer’s gave larger chains such as Total Wine, Walmart and Kroger preferential discounts and rebates that were denied to smaller, independent retailers, even when those stores were located just a few blocks apart.
Settlement terms
Under the agreement, Southern Glazer’s must pay a smaller retailer any amount it overcharges when a monitor determines that the price difference is significant or recurring. An independent monitor will oversee compliance for six years, receiving detailed sales records from the distributor twice a year.
Background and legal basis
The case was grounded in the 1936 Robinson‑Patman Act, a rarely enforced statute that permits volume discounts only when a seller can prove genuine cost efficiencies from bulk sales. The FTC argued that Southern Glazer’s failed to meet that standard for the smaller stores.
Company response
Southern Glazer’s said it was pleased to resolve the matter without a trial or admission of wrongdoing. “Southern Glazer’s Wine and Spirits did not violate—and is not violating—the Robinson‑Patman Act,” said Alan Greenspan, the company’s chief legal and compliance officer. He added that the settlement does not prohibit any specific business activity and that the company does not expect material changes to its pricing practices.
Geographic scope
The settlement covers sales to the five largest chain retailers in 26 states, including Alaska, Arizona, California, Florida, Texas and Washington. The original complaint had alleged discrimination in 33 states; a later investigation found insufficient evidence in seven of those states.
Administration perspective
FTC Chairman Andrew Ferguson, appointed by President Donald Trump on the day the president took office in January 2025, initially expressed skepticism about the lawsuit. He later noted that Southern Glazer’s could likely justify most price differences based on cost variations. After a federal court denied the company’s motion to dismiss in April 2025, Ferguson described the settlement as the best outcome for all parties, emphasizing that the monitor‑based approach ensures compliance only where actual overcharges are found.
The settlement reflects the Trump administration’s focus on enforcing fair competition and protecting small businesses from discriminatory practices, while avoiding costly litigation.
Original reporting: Alexandria, VA News – WTOP News — read the source article.
