FTC settles with Southern Glazer’s to limit wine‑spirit price gaps in 26 states
The Federal Trade Commission announced a settlement with Southern Glazer’s Wine and Spirits LLC that will restrict the prices it charges small, independent retailers relative to large chain stores across 26 states. Under the agreement, Southern must pay harmed independent retailers 1.5 times the total price difference for any proven discriminatory transaction, and faces penalties if recurring overcharges exceed $5,000 in a year.
The settlement applies to nearly all wine and spirits sales Southern makes to the five largest national chain retailers in the 26 states covered. It bars Southern from offering discounts or rebates to large buyers that are not available to small competitors unless the difference is justified by actual distribution cost differences. An independent monitor will assess compliance; if violations are found, the monitor can trigger direct cash payments to affected small businesses. The FTC can pursue further enforcement if Southern fails to remedy violations, potentially leading to additional penalties.
“This settlement marks a significant milestone for the FTC in its enforcement of the Robinson-Patman Act, which Congress enacted to empower small businesses to compete against large ones,” Daniel Guarnera, Director of the FTC’s Bureau of Competition said.
The FTC’s settlement resolves a lawsuit brought by the Commission in 2024, which alleged that Southern violated the Robinson-Patman Act by depriving small businesses of discounts and rebates available to large competitors. The FTC’s settlement with Southern delivers a successful conclusion to the Commission’s first enforcement action under the Robinson-Patman Act in a generation.
What we know
Southern Glazer’s Wine and Spirits LLC is the nation’s largest distributor of wine and spirits
The settlement covers nearly all Southern wine and spirits sales to the five largest chain retailers in 26 states
The settlement will provide direct cash payments to harmed small businesses if an independent monitor finds Southern violates the order
Recurring price discrimination exceeding $5,000 over a 12‑month period triggers a violation
For proven violations, Southern must pay the independent retailer 1.5 times the full aggregated price‑differential amount