FTC Settles First Robinson-Patman Act Case in 25+ Years with Southern Glazer's
The FTC settled a Robinson-Patman Act case with Southern Glazer's, its first in 25+ years.
Why it matters: This settlement signals renewed regulatory focus on anti-price discrimination enforcement impacting small businesses and retailers. Legal teams must monitor price discrimination risks closely.
- Settlement announced October 2, 2026, involving Southern Glazer's Wine and Spirits, the largest U.S. wine and spirits distributor.
- FTC alleged illegal price discrimination favoring large chains like Walmart and Total Wine over small, independent retailers.
- Settlement imposes six-year oversight with an independent monitor and requires compensation if recurring discrimination is found.
- Southern Glazer's generated $26B revenue in 2023 and distributes about one-third of U.S. wine and spirits, covering sales in 26 states.
On October 2, 2026, the FTC announced a settlement with Southern Glazer's Wine and Spirits LLC, marking its first enforcement action under the Robinson-Patman Act in over 25 years. The law was enacted in 1936 to prevent anticompetitive price discrimination disadvantaging smaller businesses.
The FTC alleged that Southern Glazer's gave discounts and rebates to large retailers like Walmart, Total Wine, and Kroger, while charging higher prices for the same products to small, independent retailers. This practice raised concerns about unfair competition.
Under the settlement, Southern Glazer's will face a six-year monitoring regime overseen by an independent monitor. If the monitor finds evidence of significant or recurring price discrimination, Southern Glazer's must compensate affected independent retailers. The settlement applies to sales involving the five largest chain retailers in 26 states, including California, Florida, and Texas.
Southern Glazer's, which distributes approximately one-third of all U.S. wine and spirits, reported $26 billion in sales to retail customers in 2023. The company denies violating the law, as stated by its Chief Legal and Compliance Officer Alan Greenspan.
FTC's Bureau of Competition Director Daniel Guarnera emphasized this action as a milestone affirming the agency’s commitment to protecting small businesses under the Robinson-Patman Act. Legal teams should watch for potential ripple effects since this signals a more active regulator stance on pricing practices.
By the numbers:
- $26 billion — Southern Glazer's 2023 revenue from wine and spirits sales to retail customers
- Six years — duration of the monitoring regime under the settlement
- Approximately one-third — share of U.S. wine and spirits distributed by Southern Glazer's
Yes, but: Southern Glazer's denies violating the Robinson-Patman Act despite the FTC settlement.