- The FTC and a coalition of state attorneys general secured a settlement with Corteva that resolves the 2022 lawsuit alleging its post-patent loyalty program paid distributors to block cheaper generic pesticides from reaching farmers.
- For 10 years the order bars Corteva from conditioning distributor payments on a customer buying more than 50% of its requirements of a given pesticide active ingredient from Corteva, from capping a distributor's generic purchases below 50%, and from reintroducing equivalent share- or volume-based programs.
- The order applies to all of Corteva's post-patent active ingredients, beyond the three exemplar ingredients named in the complaint, and requires Corteva to pay the state plaintiffs $35 million.
- Litigation against Syngenta on the same loyalty-program allegations continues, and the FTC says the Corteva settlement builds on its earlier settlement with agricultural equipment maker Deere & Company.
Quotes
“This settlement will do away with unfair corporate practices that have hurt farmers by impeding the sales of lower-priced products”
“The agreement the FTC and its state partners secured will give farmers better pesticide options at lower prices, enabling farmers to continue to put food on Americans’ tables.”