California accuses Amazon of pressuring Walmart and Levi's to illegally hike prices

An official from California alleges that Amazon is unlawfully increasing prices for US consumers.

In a statement issued on Monday, California Attorney General Rob Bonta claimed that Amazon is engaging in price manipulation by colluding with suppliers and sellers to increase costs for US customers beyond necessary market levels.

"During this affordability crisis, Amazon is acting unlawfully to generate profits, ensuring consumers can’t find lower prices elsewhere," said Bonta. "We’ll face them in court."

In the statement, he declared that evidence of Amazon's price manipulation has been made public via a 19-page document. 

In this document, Bonta noted that Amazon pressured Levi's to urge Walmart to raise its jeans price from around $25 to $29, to match Amazon’s pricing.

The lawsuit also names other companies like Home Depot, Target, Best Buy, Hanes, and Chewy.

Bonta has requested the court to stop Amazon’s price manipulation tactics while the trial is ongoing and to ensure Amazon ceases "using vendors as intermediaries with its rivals." The trial will commence in January 2027.

In response to inquiries, an Amazon representative told Business Insider that the motion is a "clear attempt to divert attention from the case’s lack of strength."

The representative further mentioned that Bonta initiated this move over three years after the original lawsuit was filed. 

Back in 2022, Bonta alleged in the lawsuit that Amazon forced sellers into agreements preventing them from offering lower prices to other retailers.

"Amazon is often cited as America’s most affordable online store, and we take pride in offering great deals every day," an Amazon representative remarked.

Conversely, spokespersons for Levi’s and Walmart refrained from commenting, stating they are not part of the lawsuit.

Amazon's stock has surged by around 43% over the last year.