Energizer, Walmart sued for conspiring to raise battery prices

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NEW YORK — Energizer Holdings Inc. and Walmart Inc. have been sued by consumers and retailers in three proposed class actions accusing them of conspiring to drive up the prices of disposable batteries.

According to the complaints filed Friday, Energizer “under pressure from Walmart” agreed to inflate wholesale battery prices to other retailers starting around January 2018, and is asking the retailers not to undercut Walmart on price.

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Wal-Mart’s competitors allegedly risked higher wholesale prices or being cut off by Energizer, the largest maker of disposable batteries in the US, if they charged less at checkout than Walmart, the world’s largest retailer.

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The complaints said the scheme led to higher prices from Duracell, owned by Energizer and Berkshire Hathaway, which together control 85% of the disposable battery market, which inflation and changes in demand could not explain.

The complaints added that Energizer was trying to recover lost sales in 2013 when Walmart ended its exclusive battery contract with the retailer’s Sam’s Club unit, and set up a team, Project Atlas, that worked to ensure Walmart’s prices were low.

Wal-Mart said in a statement to Reuters that it takes allegations like this very seriously and will respond in court as appropriate. Energizer did not respond to a request for comment on Saturday. Duracell is not a defendant.

The lawsuits, filed in federal court in San Francisco, seek unspecified damages and triple damages under federal and state antitrust laws and various state consumer protection laws. They are also seeking orders to prevent Energizer from linking battery sales to pricing, and to require Energizer and Walmart to “dissipate” the effects of their anticompetitive behavior.

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According to the plaintiffs, Energizer’s share of the US disposable battery market rose to more than 50% from 40% in 2018.

The complaints cited an Energizer sales representative who told the CEO of rival Walmart Portable Power Inc, which was charging lower prices, on a phone call in early 2021 why Energizer was cutting it.

She was quoted as saying, “She admitted that Energizer modified their pricing policies at Walmart’s request, telling him, ‘This is 1000% about Walmart and wants the best price.'”

Portable Power leads retailers’ lawsuit.

The cases before the US District Court, Northern District of California, are: Copeland et al v Energizer Holdings Inc et al, No. 23-02087; Portable Power Inc v. Energizer Holdings Inc and Others, No. 23-02091, and Schumann and Others v. Energizer Holdings Inc and Others, No. 23-02093. (Reporting by Jonathan Stempel and Mike Scarcella in New York; Editing by Andrea Ricci and Leslie Adler)