News

Amazon accused of illegal price fixing scheme

The lawsuit alleges that Amazon pressured other online retailers to match its prices to ensure Amazon wouldn't need to cut theirs © Image Credit: Unsplash / Remy Gieling

If it seems like prices have been going up, you may not be wrong. E-commerce juggernaut Amazon has been accused of price fixing by pressuring its rival retailers and brands, like Target and Walmart, to raise their online prices so Amazon could keep its prices the same.

Lawsuit filed in California

The accusations are part of a lawsuit that was filed by the California Attorney General in 2022. The lawsuit alleges that Amazon engaged in illegal price fixing, causing artificially inflated prices on several platforms.

The suit also alleges that Amazon "coordinated with vendors and major retailers—including Target, Walmart, Chewy, Best Buy, and Home Depot—to raise prices across the market."

Amazon denies any wrongdoing

Amazon has spoken out a couple of times, denying any wrongdoing. It said the claims are "entirely false and misguided," and said its goal is to keep prices low.

New evidence has been presented in the lawsuit, which Amazon also commented on, calling it "a transparent attempt to distract from the weakness of the case," and saying regulators are mischaracterizing routine competitive practices.

Since Walmart and Target were also named in the lawsuit, they were also pressed for a statement.

Walmart's statement, cited by Newsbreak, read that it doesn't 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."

So far, Target hasn't released a public statement.

Heading to trial

Customers will need to wait a while before getting any further insight. The lawsuit isn't expected to go to trial until January 2027.

What will be interesting is if the court finds Amazon guilty. This could make huge waves for online retailers by creating new policies around online pricing.

All the more reason to comparison shop

The one big lesson shoppers can take from this is to do comparison shopping. Don't just assume one retailer always has the lowest price, because you never know until you look around.

Sources: Newsweek

Popular raw dog food pulled from shelves over salmonella

Before feeding your dog raw dog food, you'll want to ensure you don't have this one on hand. Albright's Raw Pet Food has issued a voluntary recall after a routine sampling showed Salmonella to be present. Chicken Recipe gets a voluntary recall The Food

Dollar Tree is opening 400 stores while other chains shut down

With so many retailers announcing closures this past year, it is a bit surprising to see the opposite type of announcement. That's exactly the case with Dollar Tree, which is bucking the trend and opening a whopping 400 stores. Discount dollar stores on the rise What makes this

Wordle is coming to NBC as a game show with Savannah Guthrie

Wordle is officially turning into a game show on NBC, with a planned premiere in 2027. The show will be led by Savannah Guthrie, co-host of the Today show. She announced the project alongside Jimmy Fallon, whose production company is also involved in bringing the show to life. NBC even

Amazon launches new 30-minute delivery service in these US cities

Running out of milk, toothpaste, or something random before a flight might not require a store trip anymore. Amazon just launched a new service called Amazon Now, promising delivery in 30 minutes or less for everyday essentials. With the service already rolling out across major U.S. cities, here is