US Senator Warren presses Amazon on contracting, pricing practices for local governments and schools

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Source: Reuters

March 12, 2026 6:09 AM EDT Updated 10 hours ago


March 12 (Reuters) - U.S Senator Elizabeth Warren of Massachusetts is asking Amazon (AMZN.O), opens new tab CEO Andy Jazzy to provide details on its ​algorithmic pricing and contracting practices for the company's procurement ‌platform after an advocacy group said some schools and local governments paid more for office supplies compared to others in nearby locations, according to ​a letter seen by Reuters.

"Instead of offering fixed prices ​for all buyers, which are typical in the procurement ⁠space, Amazon Business subjects buyers to algorithm-driven dynamic pricing that ​forces school districts and local governments to pay ever-changing, often ​inflated costs for essential goods," Sen. Warren said in the letter.

States including California and New York, along with the U.S. Federal Trade Commission, have raised ​concerns about the collection and use of personal data to ​determine prices

Advocacy group Institute for Local Self-Reliance in December released a report saying algorithmic ‌pricing ⁠by Amazon Business lets the company covertly raise prices.

One city paid three times as much for a pack of Sharpies as another nearby school district, according to the ILSR report.

Read more: https://www.reuters.com/sustainability/society-equity/us-senator-warren-presses-amazon-on-contracting-pricing-practices-local-2026-03-12/

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Link to Senator Warren PRESS RELEASE - Warren Presses Amazon CEO on Shady Tactics Used to Overcharge School Districts, Local Governments, American Taxpayers

Link to LETTER (inquiry) (PDF) - https://www.warren.senate.gov/imo/media/doc/letter_from_senator_warren_to_amazon_re_dynamic_pricing.pdf