California Attorney General Rob Bonta has accused Amazon of pressuring vendors, including Levi Strauss, to raise prices on discounted items such as khaki pants. According to a filing in San Francisco Superior Court, Amazon allegedly used three schemes to fix prices: coercing vendors to pressure competitors, directly raising prices, and blocking product distribution.
The filing reveals that Amazon wanted to sell Levi’s Easy Khaki Classic pants for $29.99, but Walmart had lowered the price, prompting Amazon to match it at $25.47 to $26.99. Amazon then contacted Levi Strauss, asking the company to convince Walmart to raise its price. As a result, Walmart raised its price, and a Levi Strauss employee emailed Amazon, expressing hope that this would resolve future issues.
The lawsuit, filed in 2022, seeks a preliminary injunction against Amazon to stop alleged price fixing. The hearing is set for July 23, ahead of a trial in January 2027. Bonta’s office argues that Amazon uses its market power to inflate retail prices, affecting everyday goods.
Amazon disputes the claims, calling the legal motion a “transparent attempt to distract from the weakness of its case.” The company maintains that it is consistently identified as America’s lowest-priced online retailer and looks forward to responding in court.
The Los Angeles Times reported that the lawsuit also involves allegations of Amazon raising prices on pet treats and working with a manufacturer to convince Chewy to follow suit. The Guardian revealed that emails show Amazon colluding with vendors to raise prices on products like eyedrops and pet treats.
The case highlights ongoing concerns about Amazon’s market practices, with the Federal Trade Commission and other states previously accusing the company of inflating prices and stifling competition. The outcome of this lawsuit could impact how Amazon and other large retailers conduct business in the future.
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