FTC, States Win Protections to Lower Pesticide Prices for American Farmers in Antitrust Case Against Corteva

What happened

The Federal Trade Commission and a coalition of state attorneys general have secured a significant settlement agreement with pesticide manufacturing giant Corteva Inc. The settlement reached with Corteva resolves a lawsuit brought by the FTC and states in 2022, which alleges that Corteva implemented a post-patent loyalty program that paid distributors to block competitors from selling cheaper generic products to farmers.

The settlement announced today resolves only the claims against Corteva. The Commission vote to approve the proposed stipulated order was 2-0.

The complaint makes similar allegations as to Syngenta—another pesticide manufacturing giant—and its post-patent loyalty program. The settlement with Corteva builds on recent FTC actions, including a landmark settlement with agricultural equipment maker Deere & Company, to lower the cost of living for all Americans, including farmers and consumers.

Ordinarily, lower-priced generic competitors should be able to enter the market and drive down prices once the relevant patent and regulatory exclusivity periods have expired. farmers were forced to overpay for crop protection products.

Key facts

• The settlement — announced: today resolves only the claims against Corteva