California AG alleges Amazon coordinated with brands to fix prices on rival platforms
On Monday, California Attorney General Rob Bonta unveiled court documents that allege collusion between Amazon and its suppliers regarding pricing. The filings indicate that Amazon instructed vendors to inflate prices on rival retailers' platforms, threatening penalties for those who did not comply. For instance, Amazon allegedly pressured Levi Strauss to increase the price of Easy Khaki Classic pants at Walmart from $25.47 to $29.99, and also urged Home Depot to hike fertilizer costs. Bonta remarked, "Amazon is working to make your life more unaffordable." In response, Amazon labeled the motion as a political stunt, pointing to its status as the most affordable major online shopping option. Bonta's lawsuit, initiated in 2022, is scheduled for trial in 2027, amid separate FTC investigations concerning Prime subscriptions.
Key facts
- California Attorney General Rob Bonta secured public release of court filings on Monday
- Filings allege Amazon coordinated with vendors to fix prices on competing platforms
- Vendors faced penalties for non-compliance including advertising restrictions or product removal
- Amazon pressured Levi Strauss to make Walmart raise price of Easy Khaki Classic pants from $25.47 to $29.99
- Amazon pushed Home Depot to increase fertilizer prices
- Amazon urged Allergan to get Walmart to charge $16.99 instead of $13.59 for eye drops
- Amazon worked to end price match with Chewy for pet treats
- Lawsuit was originally filed in 2022 and trial is scheduled for 2027
Entities
Institutions
- Amazon
- Levi Strauss
- Walmart
- Home Depot
- AbbVie
- Allergan
- Chewy
- California Attorney General's Office
- Federal Trade Commission
- San Francisco Superior Court
- GV Wire
- The Los Angeles Times
Locations
- California
- San Francisco
- United States
Sources
- Quartz —