WEBVTT 00:00:00.020 --> 00:00:02.980 California is suing Amazon for price fixing 00:00:02.981 --> 00:00:05.341 and some documents were unearthed this week. 00:00:05.342 --> 00:00:06.501 What did we learn? Yeah, 00:00:06.502 --> 00:00:09.861 we Learned that if you've been comparison shopping online, 00:00:09.862 --> 00:00:10.901 that it's a total joke 00:00:10.902 --> 00:00:13.781 because these big retailers are actually working together 00:00:13.782 --> 00:00:15.821 behind the scene means to raise prices 00:00:15.822 --> 00:00:17.541 and lock step. An example of this, 00:00:17.542 --> 00:00:19.821 the company that makes Canine Naturals, 00:00:19.822 --> 00:00:22.221 the pet food, Amazon went to them and said, yeah, 00:00:22.222 --> 00:00:25.461 we want to see the price go up on some of your products 00:00:25.462 --> 00:00:28.341 and can you go please talk to chewy? 00:00:28.342 --> 00:00:29.181 And so they did. 00:00:29.182 --> 00:00:32.781 They talked to chewy and chewy and Amazon raised their prices together. 00:00:32.782 --> 00:00:34.901 This is price fixing. I mean, 00:00:34.902 --> 00:00:38.781 straight up price fixing. We see Home Depot involved in this. 00:00:38.782 --> 00:00:40.921 Allergen, which makes eye drops, 00:00:41.000 --> 00:00:45.240 we saw them working with Amazon to raise prices across different sites. 00:00:45.260 --> 00:00:49.540 Levi's Hayes Skull candy that makes the earbuds. 00:00:49.541 --> 00:00:51.581 We saw it with a fertilizer maker. 00:00:51.582 --> 00:00:53.901 It's just extortion in broad daylight. 00:00:53.902 --> 00:00:56.021 And they're writing about this in these emails 00:00:56.022 --> 00:00:59.301 just like outlining this scheme to each other and talking about it. 00:00:59.302 --> 00:01:02.021 One involving the maker of Canine Naturals, 00:01:02.022 --> 00:01:05.901 they actually have a smiley face emoji when they report back to Amazon. 00:01:05.902 --> 00:01:06.541 Like, oh, yeah, 00:01:06.542 --> 00:01:08.501 we got the price up at chewy for you. 00:01:08.502 --> 00:01:10.781 Smiley face emoji. In this casual way, 00:01:10.782 --> 00:01:12.661 they're just like raising prices together. 00:01:12.662 --> 00:01:17.261 Then there are other situations where Amazon clearly is so powerful 00:01:17.262 --> 00:01:18.681 and they can simply use their power, 00:01:18.682 --> 00:01:21.181 power over the supplier, maximatic. 00:01:21.182 --> 00:01:23.141 Which makes ice cream makers, 00:01:23.142 --> 00:01:25.221 Amazon emailed them and said, 00:01:25.222 --> 00:01:27.261 we're seeing the price of your ice cream makers 00:01:27.262 --> 00:01:29.701 lower on other websites and basically 00:01:29.702 --> 00:01:31.181 we're gonna turn off your product 00:01:31.182 --> 00:01:33.381 so people won't be able to buy it on Amazon. 00:01:33.382 --> 00:01:34.661 And of course, Amazon's huge. 00:01:34.662 --> 00:01:37.061 You can't afford to lose your sales on Amazon. 00:01:37.062 --> 00:01:38.861 So what do we see these folks do? 00:01:38.862 --> 00:01:40.821 They go and, uh, 00:01:40.822 --> 00:01:43.941 raise their prices on the other sites and then Amazon is like, 00:01:43.942 --> 00:01:44.541 okay, great, 00:01:44.542 --> 00:01:46.141 we've turned your product back on. 00:01:46.142 --> 00:01:48.541 It seems like they're really like emboldened. 00:01:48.542 --> 00:01:52.261 Is there any shame or indication that what they're doing is illegal? 00:01:52.262 --> 00:01:54.021 One of the most striking parts of this is 00:01:54.022 --> 00:01:56.121 there's a section in what was unsealed. 00:01:56.320 --> 00:02:01.160 It shows that Amazon's training materials actually told employees, 00:02:01.260 --> 00:02:04.460 don't do this in email. You should do this over the phone. 00:02:04.461 --> 00:02:06.761 And what that tells me is 00:02:06.860 --> 00:02:09.180 that this is happening at a much bigger scale. 00:02:09.181 --> 00:02:11.461 It's probably still going on today 00:02:11.462 --> 00:02:13.861 because all of these examples that are in email, 00:02:13.862 --> 00:02:15.501 those are when employees are slipping up. 00:02:15.502 --> 00:02:18.441 So how often did this happen over the phone? 00:02:18.460 --> 00:02:21.769 We have no record of it and they're probably still doing it.