Corteva to Pay $35M to 12 States, End Crop Loyalty Program in FTC Settlement
Corteva, a global agribusiness company, has agreed to pay a fine of $35 million and end its controversial crop loyalty program as part of a settlement with the Federal Trade Commission (FTC). This comes after an investigation into the company's practices, which were deemed anti-competitive.
"This settlement sends a clear message that promoting excessive customer loyalty through exclusionary practices is not acceptable," said Janet M. Reichman, Director of the FTC’s Bureau of Competition.
The settlement resolves allegations that Corteva's crop loyalty program violated federal antitrust laws by restricting farmers' ability to switch seeds and other products from competing suppliers. The program, which rewarded farmers for staying loyal to Corteva, was found to limit competition and harm farmers' negotiating power in the market.
"We are pleased to have reached a resolution with the FTC that allows us to continue serving farmers while also making changes to our business practices," said Corteva's CEO.
As part of the settlement, Corteva is required to:
- Disband its crop loyalty program.
- Pay a civil penalty of $35 million.
- Implement a compliance monitor for three years to ensure future adherence to antitrust laws.