FTC preparing lawsuit over alcohol pricing

The Federal Trade Commission is preparing to file a lawsuit against the largest U.S. alcohol distributor, Southern Glazer’s Wine and Spirits, over practices related to how it prices and sells wine and liquor around the country, according to four people with knowledge of the matter.

The case would represent yet another move by the Biden administration to rein in dominant companies in all sectors of the economy, as it tries to demonstrate it is fighting to bring costs down for the average consumer.

This year the Justice Department has filed sprawling lawsuits against Ticketmaster and Apple and the FTC has sued to block major grocery and consumer goods mergers. The agency has also been scrutinizing supply chains in the grocery and food sectors, saying in March that dominant suppliers and retailers have used their market power to increase prices at the expense of consumers.

In recent weeks, FTC staff investigating Southern Glazer’s Wine and Spirits have recommended a lawsuit under the Robinson-Patman Act, some of the people said. The 1936 law is meant to prevent suppliers from offering favorable pricing to certain retail customers over others — typically meaning large chain stores over mom and pop outlets.

The FTC has not brought a case under the law in well over 20 years.