FTC and States Settle Antitrust Case Against Corteva Over Pesticide Loyalty Program
The FTC and state attorneys general settled an antitrust case against Corteva Inc., requiring the pesticide manufacturer to dismantle a loyalty program that allegedly prevented distributors from selling cheaper generic products. The settlement aims to lower pesticide prices for American farmers by ensuring access to lower-cost alternatives after patent expiration.
What happened
The FTC and state attorneys general reached a settlement agreement with Corteva Inc. over antitrust allegations brought in 2022. The lawsuit alleged that Corteva implemented a post-patent loyalty program that paid distributors to block competitors from selling cheaper generic pesticide products to farmers.
Under the settlement terms, Corteva will dismantle its existing pesticides loyalty program and is prohibited for 10 years from conditioning payments or benefits to distributors on purchasing a high share of Corteva pesticide active ingredients or limiting purchases of generic equivalents.
Reported impact
The settlement is intended to lower pesticide prices for American farmers by ensuring greater access to lower-cost generic pesticide products. According to the complaint, Corteva's conduct allowed the company to maintain elevated prices, forcing farmers to spend millions of dollars more for essential crop protection products.
Governance controls
The settlement resolves claims against Corteva through a stipulated order lasting 10 years, which prohibits the company from using loyalty program practices to limit competition from generic pesticide manufacturers after patent expiration.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.