The Federal Trade Commission announced Oct. 2 a settlement with Southern Glazer's Wine and Spirits, the largest U.S. wine and spirits distributor. It resolves a 2024 FTC lawsuit alleging Southern charged independent retailers more than competing large chains for identical bottles, even when stores were a few blocks apart.
The proposed stipulated order covers nearly all of Southern's wine and spirits sales to the five largest chain retailers in 26 states. It targets paired transactions, where Southern sells a product to a chain and, at about the same time, to a nearby independent retailer at a much higher price. A violation requires significant price discrimination above a threshold based on state operating costs, and recurring discrimination of more than $5,000 in total over 12 months.
If those conditions are met, Southern can fix the problem by paying the independent retailer 1.5 times the total price difference. If it does not, the FTC can sue, and a win would require Southern to pay double the price differences. The order lasts six years and is overseen by an independent monitor.
The FTC called it the first Robinson-Patman Act case resolved by a federal enforcement agency in more than 20 years, and says the aim is to help small businesses compete and give shoppers access to lower-priced wine and spirits at local retailers. The release does not say shelf prices will fall or by how much. The order has the force of law only after the court in the Central District of California approves it.