California Attorney General Rob Bonta announced the allegations in a court filing, claiming that Amazon's practices violate state antitrust laws and harm consumers. According to Bonta, Amazon pressured independent sellers to raise prices on competitor sites to make Amazon appear to have lower prices. The state alleges that Amazon used automated tools to track vendor prices on competitor sites and leveraged its dominant position to ensure those prices did not fall below Amazon's. Vendors who offered lower prices on competitor sites were punished by having their sales suppressed, for example by removing access to the 'Buy Box', Bonta said.
Specific examples cited in the lawsuit include a case where a vendor's product was suppressed because it was priced one cent higher on Amazon than on Walmart, according to deposition testimony of Mayer Handler, owner of clothing company Leveret, as reported by The Guardian. In another instance, Amazon contacted Levi's about Walmart's prices for khaki pants, and Levi's then asked Walmart to raise the price to $29.99, which Walmart did, Bonta alleged. According to The Independent, a Levi's employee described how the company spoke with Walmart and the retailer agreed to raise the price immediately.
The evidence we've uncovered is clear as day: Amazon is working to make your life more unaffordable.
Amazon has denied the allegations, calling the lawsuit 'entirely false and misguided'. The lawsuit was filed in 2022 and is due to go to trial in January 2027, according to multiple reports.
Bonta has asked the judge to immediately bar Amazon from discussing rival retailers' prices with vendors and to appoint an independent monitor to oversee compliance. It is uncertain whether the court will grant this request before the trial.
Especially while consumers face an affordability crisis, there is no room for illegal practices that impede competition and raise prices.
California looks forward to our trial in January 2027.
A. That Amazon -- the price on Amazon was higher than the price was on Walmart. Q. And how much higher? A. One penny.
I talked to Walmart and they have partnered with us to... take Easy Khaki Classic Fit back up to $29.99 immediately.