- The FTC and a coalition of state AGs reached a settlement agreement with pesticide manufacturer Corteva Inc. resolving federal and state antitrust and consumer protection allegations that its loyalty program discouraged distributors from selling lower-cost generic pesticides after Corteva’s patents expired.
- The settlement resolves a lawsuit brought by the FTC and states in 2022, that had alleged that Corteva implemented a post-patent loyalty program that paid distributors to block competitors from selling cheaper generic products to farmers. Under the 10-year stipulated order, Corteva must end its existing loyalty program and cannot condition distributor payments or benefits on purchasing more than 50% of a pesticide ingredient from Corteva. The order also prohibits programs designed to limit purchases of generic alternatives, replicate the prohibited loyalty program, or penalize distributors for doing business with competitors.
- The stipulated order also requires Corteva to pay the state plaintiffs $35,000,000 to resolve their monetary claims. The FTC’s co-plaintiffs include California, Colorado, Illinois, Indiana, Iowa, Minnesota, Nebraska, Oregon, Tennessee, Texas, Washington, and Wisconsin.