Amazon used its market power to push companies like Walmart to raise prices on its sites so the e-commerce giant wouldn’t be undercut by rivals, according to a document released Monday by California’s attorney general in an ongoing lawsuit.
In 2022, Attorney General Rob Bonta sued Amazon in San Francisco Superior Court, accusing the company of violating the state’s antitrust and unfair competition laws. The lawsuit is scheduled to go to trial next year, but Bonta is asking a judge to order Amazon to stop its practices immediately.
According to the filing, the alleged price-fixing scheme typically begins with the Seattle-based company asking suppliers to fix or investigate product prices on other websites and to raise those prices or face penalties such as promotion restrictions or even removal of products from Amazon’s site.
For example, the filing said Amazon, clothing company Levi Strauss & Co. and Walmart agreed to fix prices on khaki pants. Amazon sent links to lower-priced jeans retailers on Walmart.com and said it “hopes these issues will be resolved in the coming days.”
The next day, Levi Strauss reported that it had negotiated with Walmart to raise the price to $29.99, documents show.
“This is about protecting Californians from paying more than they should for everyday products, especially at a time when affordability feels further and further out of reach,” Bonta, a Democrat, said at a virtual news conference Monday.
An Amazon spokesperson dismissed Bonta’s motion in a statement, calling it “a clear attempt to divert attention from the weaknesses of the case with “so-called ‘new'” evidence.”
“Amazon has long been recognized as the lowest-priced online retailer in the United States, and we are proud of the low prices our customers find when shopping at our stores. Amazon looks forward to responding in court when appropriate,” the statement said.
A Walmart spokesperson said in an email that the company “does not comment on lawsuits in which we are not a party. We will always work on behalf of our customers to keep prices low.”
Levi Strauss did not immediately respond to a request for comment.
Bonta said his office is focusing on Amazon because “the illegal conduct originates on Amazon,” but reserves the right to pursue other retailers and vendors in the future.
The alleged price fixing involved a variety of goods, including home furnishings, garden products and pet care, the documents said.
A hearing on the preliminary injunction motion will be held in July.
