Amazon.com Faces Class Action Lawsuit for Allegedly Steering Shoppers to Higher-Priced Items
California residents Jeffrey Taylor and Robert Selway have filed a class-action lawsuit against Amazon.com, accusing the online retailer of violating consumer protection laws. The complaint, filed in federal court in Seattle, alleges that Amazon’s algorithm for choosing products to display in its “Buy Box” often obscures lower-priced options with faster delivery times. It claims that this practice misleads shoppers into believing they are getting the best prices when in fact they are being directed towards higher-priced items that will earn Amazon extra fees.
Shoppers Falsely Assume that Amazon’s Choices are the Best Prices, Lawsuit Claims
According to the complaint, shoppers choose Amazon’s options nearly 98% of the time, believing that the online retailer has found the best prices. This alleged deception is said to benefit third-party sellers participating in Amazon’s Fulfillment By Amazon program, who pay significant fees for inventory storage, packing, shipping, returns, and other services. The lawsuit argues that Amazon’s Buy Box algorithm prioritizes the company’s own profits over the well-being of consumers.
Washington State Law Allegedly Violated by Amazon’s Deceptive Trade Practices
The class-action lawsuit seeks damages for alleged violations by Amazon since 2016 of a Washington state law against deceptive trade practices. The plaintiffs’ lawyer, Steve Berman, claims that these deceptive practices have placed a great burden on customers. This case differs from other litigation related to Amazon’s Buy Box, as it focuses on harm to consumers rather than antitrust violations or harm to sellers who do not participate in the company’s fulfillment program.
Amazon Declines to Comment on Class-Action Lawsuit
When approached for comment, Amazon declined to provide a statement. The company now awaits the outcome of the case, which is Taylor et al v Amazon.com Inc in the U.S. District Court, Western District of Washington, with the case number 24-00169.
Note: This article has not been edited by NDTV staff and is published directly from a syndicated feed.
Analyst comment
This news can be evaluated as negative for Amazon.com. The class-action lawsuit accusing the company of misleading shoppers and violating consumer protection laws may negatively impact Amazon’s reputation. If the lawsuit is successful, Amazon could face financial damages and potential changes to their algorithm.
