The Impact of Amazon’s Alleged Price Fixing on Consumer Prices

California Attorney General Accuses Amazon of Price-Fixing Scheme

California Attorney General Rob Bonta has brought evidence to light regarding an alleged price-fixing scheme orchestrated by Amazon. The state had previously requested a preliminary injunction from the Supreme Court in February to halt Amazon’s activities while a lawsuit filed in 2022 progresses. Now, a 16-page document has been released, revealing details of the scheme, which is said to involve raising prices of other retailers’ products before Prime Day and manipulating availability to maintain lower prices.

Amazon’s Alleged Scheme Involving Vendors and Competitors

According to Bonta, the document exposes how Amazon collaborated with vendors and purported competitors such as Walmart, Target, Best Buy, Chewy, and Home Depot in three main ways.

The document includes examples of Amazon communicating with vendors like Levi’s, Scotts, and Hanes to influence pricing strategies on rival websites. For instance, Amazon reportedly urged Levi’s to increase prices on Walmart.com, leading to a confirmation from Levi’s regarding adjusting prices to align with Amazon’s directives.

Another instance cited by Bonta involves Amazon instructing vendors like Scotts and Hanes to raise prices on competing platforms, particularly in anticipation of Amazon’s Prime Day event.

One notable case mentioned in the document is Amazon’s directive to Scotts to coordinate with a rival retailer to increase prices leading up to Prime Day. Additionally, Amazon reportedly prompted Hanes to request price hikes from Target and Walmart to match Amazon’s pricing.

Bonta emphasized the evidence gathered by his office, indicating that Amazon pressured vendors to inflate prices on products sold elsewhere or remove them from competing stores. He stated, “You don’t see price fixing so explicitly and egregiously in writing like this.” Amazon has yet to respond to requests for comment from The Verge.