California Sues Amazon Over Alleged Price-Fixing Tactics

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Emails released by California’s attorney general on Monday show Amazon allegedly worked with other companies to artificially inflate prices on a variety of products, from pet treats to khaki pants. These claims are detailed in newly unsealed court documents filed by Attorney General Rob Bonta.

The emails suggest that Amazon employees were coordinating with vendors to encourage major retailers like Walmart and Chewy to raise prices on products listed on their platforms. In one instance, Amazon is accused of increasing prices on a popular set of dog treats and working with the manufacturer to persuade Chewy to match the hike. Amazon allegedly sent the manufacturer a list of products with price increases, instructing them to ensure Chewy followed suit. Just two days later, the manufacturer reportedly confirmed that the price increase had been applied on both platforms.

In another case, Amazon reportedly sent links to Levi’s showing that Walmart was selling Dockers khaki pants at a lower price than Amazon. The next day, Levi’s allegedly told Amazon it had coordinated with Walmart to raise the price of the pants to $29.99, which was then mirrored by Amazon shortly after.

Bonta’s office argues that these actions demonstrate Amazon’s attempt to manipulate the market by colluding with vendors and other retailers to raise prices for consumers, an allegation that the company strongly denies.

“The evidence uncovered today is clear as day: Amazon is working to make your life more unaffordable,” Bonta said, criticizing Amazon for price-fixing. “The company is price-fixing, colluding with vendors and other retailers to raise costs for Americans beyond what the market requires.”

In response, Amazon dismissed the claims, accusing Bonta’s office of a “transparent attempt to distract from the weakness of its case.” The company stated that it remains proud of offering low prices to customers and would address the allegations in court.

Walmart, Levi’s, and Chewy, while mentioned in the filings, are not named as defendants in the case.

These revelations are part of an ongoing antitrust lawsuit filed by Bonta’s office in 2022, accusing Amazon of manipulating prices across various online platforms to create an artificial price floor that limits competition while allowing Amazon to retain its competitive edge. Bonta contends that by controlling prices in this manner, Amazon can present itself as offering the best deals, even as it benefits from reduced competition.

The newly unsealed records were part of a motion filed in February by Bonta, seeking an injunction to halt Amazon’s alleged price-fixing practices. Amazon’s trial is scheduled to begin in January 2027, and the company continues to deny the core allegations, arguing that its practices encourage competition rather than stifle it.

This is not the first time Amazon’s pricing practices have come under scrutiny. In a separate release, the Guardian reported last week on additional court documents showing how Amazon’s tactics allegedly pressured smaller companies to raise their prices in order to compete on its platform.

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