California Attorney General Rob Bonta filed a motion alleging that Amazon engaged in illegal price-fixing, contributing to the growing affordability crisis in the United States. Bonta claims that Amazon pressured vendors such as Levi's to ensure competitors like Walmart raised their prices to match Amazon's listings. The case is set to go to trial in January 2027.
Price Manipulation Allegations
In a 19-page memo released by Bonta, he detailed instances where Amazon allegedly coerced vendors into signing agreements preventing them from offering lower prices to other retailers. One example cited in the filing involves Levi's being pressured to increase the price of its khaki pants from $25 to $29 to align with Amazon's pricing. Other companies named in the filing include Home Depot, Target, Best Buy, Hanes, and Chewy.
"Amazon is illegally working to rake in profits by making sure consumers have nowhere else to turn to for lower prices," Bonta said in a press release.
Amazon's Response
An Amazon spokesperson dismissed the motion as a "transparent attempt to distract from the weakness of its case" and noted that Bonta filed the motion more than three years after the original complaint. The company maintained its position as America's lowest-priced online retailer, stating, "We're proud of the low prices customers find when shopping in our store."
Spokespersons for Levi's and Walmart declined to comment, citing their non-involvement in the litigation. Amazon's stock price has risen by approximately 43% over the past year, underscoring the company's dominant market position.