Warren questions Amazon on pricing, contracting for schools, local governments

Sen. Elizabeth Warren (D-Mass.) pressed Amazon on Wednesday about its pricing and contracting practices, raising concerns that the e-commerce giant is overcharging schools and local governments.

In a letter to Amazon CEO Andy Jassy, Warren pointed to a December report from the Institute for Local Self-Reliance, which found that schools and governments that used Amazon’s procurement system routinely paid more for supplies.

The Massachusetts Democrat argued that the company’s group purchasing contracts “sidestep competitive bidding and often overcharge government buyers.”

She also took aim at Amazon’s use of dynamic pricing, suggesting it forces schools and local governments to “pay ever-changing, often inflated costs for essential goods.”

“The net result of these machinations is to drive up costs for local schools, local governments, and taxpayers – while strengthening Amazon’s grip on the public procurement market and running local businesses into the ground,” Warren said in Wednesday’s letter.

She pressed the company for information about how it determines prices, as well as how it negotiates and communicates with group purchasing organizations that obtain contracts on behalf of contingents of public-sector clients.

The Hill has reached out to Amazon for comment.

The rise of dynamic pricing, from online marketplaces to grocery store shelves, has created new questions about how companies are using technology to rapidly adjust prices in response to demand, competition and customer behavior.

In 2024, Warren and former Sen. Bob Casey (D-Pa.) raised concerns to Kroger about its use of electronic shelving labels, warning that dynamic-pricing practices could raise costs for consumers.