California’s lawsuit to Amazon: You forced Levi’s, Hanes to increase prices on Walmart and Target
Amazon is facing price-fixing allegations in California. According to a report by The New York Times, a newly unsealed filing released this week claims that the e-commerce giant pressured major brands like Levi’s and Hanes to influence pricing on rival platforms. The filing is part of an ongoing antitrust lawsuit filed by the US state in 2022, which accuses Amazon of harming competition and raising online prices. The case, scheduled to go to trial next year, now includes additional details suggesting that Amazon asked brands like Levi Strauss & Co. and Hanesbrands to intervene when products were listed at lower prices on competitors such as Walmart and Target.California’s attorney general, Rob Bonta, said, “You don’t see price fixing so explicitly and egregiously in writing like this,” pointing to internal communications cited in the filing.The lawsuit alleges that Amazon monitored pricing across platforms and, when it identified lower prices elsewhere or faced losses, it asked brands to push competing retailers to raise their prices. According to the California lawsuit, this resulted in higher prices across multiple platforms.
Amazon’s emails and internal communication reveal pricing pressure on brands
The filing includes examples of how Amazon communicated with brands. In one instance in 2022, an Amazon employee shared links showing lower prices on rival sites with Hanes, the NYT reported. A Hanes employee responded that the company had “reached out to Target and Walmart to have the prices increased.”In another example from 2021, an Amazon employee flagged certain Levi’s products listed on Walmart at lower prices, calling them “styles of concern.” A Levi’s employee responded that Walmart had agreed to increase the price of one item to $29.99 as a “test for the best interest of the marketplace.” Amazon later adjusted its own pricing to match.The filing also describes cases where Amazon removed products from its platform rather than sell them at a loss. In one instance, the company told Maxi-Matic that its ice cream maker had been “taken down” after it was listed elsewhere at a significantly lower price. “Amazon cannot sell at this significant loss,” the employee said, according to the filing seen by NYT. Maxi-Matic responded that it had “put Best Buy out of stock” and was “following up” with that retailer.Meanwhile, Amazon has denied the allegations and said it will respond in court. A company spokesperson, Mark Blafkin, described the filing as a “transparent attempt to distract from the weakness of its case, coming more than three years after filing its complaint and based on supposedly ‘new’ evidence it has had for years.”“Amazon is consistently identified as America’s lowest-priced online retailer, and we’re proud of the low prices customers find when shopping in our store,” Blafkin added.The case adds to broader regulatory scrutiny of Amazon’s business practices. In 2023, the Federal Trade Commission (FTC) and 17 states filed a separate lawsuit alleging the company maintained its position in online retail through practices that led to “artificially higher prices.”California has also asked the court to stop Amazon from continuing the alleged practices while the case proceeds. A previously redacted version of this request was made public earlier this week, offering more insight into internal communications.The US argued in its filing that Amazon’s influence over brands allowed it to shape pricing across the market. “Amazon’s message to vendors is clear: Ensure that prices at other retailers stay high or face consequences,” California’s lawsuit alleged. The outcome of the case could have implications for how online marketplaces operate and for pricing strategies across competing platforms.
