CEO of Storch Advisors, Gerald Storch, joins ‘Varney & Co.’ to discuss buy now, pay later loans and Amazon’s growing car sales platform.
Officials in California allege that Amazon may have quietly jacked up prices online by pressuring retailers and brands not to undercut their offerings, new public court evidence shows.
The allegations, which came to light Monday as part of the state’s antitrust lawsuit, allege that Amazon worked behind the scenes with companies like Levi Strauss and others to influence prices at competitors including Walmart, Home Depot and Chewy.
In one example cited by the state, Levi’s allegedly prompted Walmart to raise the price of khaki pants after Amazon raised concerns about a lower listing. In another example, Amazon encouraged suppliers to coordinate price increases on products such as pet treats. These moves, California says, helped Amazon avoid having to charge lower prices.
“As we are not a party to this lawsuit, we have no comment on the allegations,” a Levi Strauss spokesperson said.
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A worker nears packages in an Amazon delivery vehicle in San Francisco, California, U.S., on Monday, February 2, 2026. (David Paul Morris/Bloomberg via Getty Images)
State officials claim the behavior was not isolated, but part of a broader strategy applied across all product categories over several years. The filing outlines three alleged tactics: encouraging competitors to raise prices, temporarily breaking price matches so that higher prices stick around, and in some cases removing cheaper products from competing sites altogether.
In some cases, sellers are said to have withdrawn products from competing retailers entirely, eliminating cheaper options before prices rose on Amazon and elsewhere.
The filing also alleges that Amazon forced compliance by using its market power, including threatening to suppress product listings, restrict promotions or impose financial penalties on suppliers who allowed lower prices on other platforms.
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Officials say sellers often had little choice but to comply, given Amazon’s size and importance to their business.
“Amazon is attempting to illegally rake in profits by ensuring that consumers have nowhere else to go for lower prices,” Attorney General Rob Bonta said in a statement.
Attorney General Rob Bonta speaks to the media at UC Irvine in Irvine, California on June 16, 2025. (Paul Bersebach/MediaNews Group/Orange County Register via Getty Images)
Amazon denied the claims, saying its agreements with sellers are legal and help ensure competitive pricing and product availability. The company said it is “consistently identified as America’s cheapest online retailer” and called the lawsuit an attempt to distract from a weak case.
The filing also alleges that Amazon has discouraged employees from documenting sensitive pricing discussions in writing, instead encouraging the use of phone calls.
The Amazon logo is displayed on the facade of Amazon Germany’s headquarters in Parkstadt Schwabing, Munich, Bavaria on January 27, 2026. (Matthias Balk/photo alliance via Getty Images)
The case comes as Amazon’s size continues to grow — the company recently surpassed Walmart in annual revenue — intensifying scrutiny over its influence over online prices.
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California is seeking to block the alleged practices and recover profits, with a hearing scheduled for July and a trial for January 2027.
Reuters contributed to this report.
