In a proposed U.S. class action lawsuit, retail giant Amazon finds itself in legal crosshairs, accused of violating consumer protection laws by allegedly steering millions of shoppers towards higher-priced items to rake in additional fees.
The lawsuit, filed on Thursday in federal court in Seattle, alleges that Amazon's algorithm, responsible for selecting products showcased in its "Buy Box" during user searches, often disregards lower-priced options with faster delivery times. This, plaintiffs claim, leads shoppers to pay more than necessary, all while Amazon pockets hefty fees from third-party sellers participating in its Fulfillment by Amazon (FBA) program.
The lawsuit comes in the wake of another legal battle with the United States government, where Amazon faces allegations of antitrust violations. However, this class action lawsuit, filed by the Federal Trade Commission and 17 states, shifts the focus to consumer harm caused by deceptive trade practices.
According to the complaint, shoppers clicking on Amazon's "Buy Now" or "Add to Cart" buttons are led to believe they're getting the best deal available, with Amazon's algorithm allegedly designed to prioritize its own profits over consumer savings. While Amazon has not publicly commented on the matter, plaintiffs argue that this practice places an undue burden on consumers.
Jeffrey Taylor and Robert Selway, both residents of California, are the named plaintiffs in the case. Their lawyer, Steve Berman, said that "This lawsuit takes into account the harm done to consumers, rather than focusing solely on antitrust violations or harm to non-participating sellers"
Berman asserts that Amazon's actions over the years may have violated state laws prohibiting deceptive trade practices, potentially damaging consumer trust and impacting future business prospects. The case, Taylor has been filed in the U.S. District Court for the Western District of Washington.
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