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According to the filing, the alleged price fixing scheme
generally begins with the Seattle-based company demanding
vendors to fix or look into prices of products on other websites
and request that those prices be increased or else face
penalties such as promotion restrictions or even removal of
products from Amazon's site.
For example, the filing alleges that Amazon, apparel company
Levi Strauss & Co. and Walmart agreed to fix prices on khaki
pants. Amazon sent the denim retailer links to pants that were
priced lower on Walmart.com, saying it “hop(ed) these can get
resolved over the next few days.”
The next day, Levi Strauss reported having talked to Walmart to
increase prices back to $29.99, according to the filing.
“This is about protecting Californians from paying more than
they should for everyday products, especially at a time when
affordability feels farther and farther out of reach,” Bonta, a
Democrat, said Monday at a virtual news conference.
In a statement, a spokesperson for Amazon dismissed Bonta's
motion as “a transparent attempt to distract from the weakness
of its case” with “supposedly ‘new’” evidence.
“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. Amazon looks forward to
responding in court at the appropriate time,” the statement
said.
A Walmart spokesperson said in an email that it does "not
comment on litigation in which we are not a party. We will
always work hard on behalf of our customers to keep our prices
low.”
Levi Strauss did not immediately respond to a request for
comment.
Bonta said that his office is focused on Amazon because “the
unlawful conduct stems from and originates from Amazon” but
reserved the right to go after other retailers and vendors in
the future.
The alleged price fixing involves a wide assortment of goods,
including home decor, garden products and pet care, according to
the filing.
The hearing for the motion for a preliminary injunction is in
July.
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