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Amazon.com Inc. filed a motion last week to dismiss a proposed class action lawsuit accusing the online retailer of encouraging Amazon Prime vendors to tack on hidden shipping fees, arguing that the plaintiffs lack standing to sue.
The Amazon Prime shipping class action lawsuit, filed in February, accuses Amazon.com of encouraging vendors to raise their product prices by the amount they would have charged for shipping in order to trick customers into believing they they did not have to pay for shipping.
Plaintiffs Dr. Cemal Ekin and Marcia Burke allege in the Amazon class action lawsuit that they both purchased products taking advantage of Amazon Prime, a paid membership that provides free two-day shipping and discounted one-day shipping for an annual rate of $79 at the time that they purchased memberships. The pair allege they paid excessive prices because Amazon affiliates that sell through the site, under a program named Fulfillment by Amazon, reportedly bumped up their prices to account for the savings in shipping.
The retail giant argued in a motion filed July 24 that Dr. Ekin’s claims in the class action lawsuit fail the Article III standing test because he cancelled his membership before the period ended and was refunded the entire cost to receive Amazon Prime. In addition, the company argues that the terms that the doctor agreed to included phrasing promising two-day shipping for free and the company followed through, according to the motion to dismiss.
Amazon makes the same argument regarding Burke’s claim, but goes further on to note that the prices that she paid for two books and a game were less than the cost of shipping, “thus, to make out a claim that these sellers increased prices to cover shipping costs, Ms. Burke would have to show they previously had negative prices, i.e., the sellers would have paid customers to buy their products,” Amazon says in its motion.
Finally, of the purchases that Dr. Ekin made using Amazon Prime, none came through the Fulfillment by the Amazon program and the three purchases noted previously by Burke were the only ones out of 64 purchases she made in 2010 that were processed by outside sellers, the company argued.
Ekin alleges in the Amazon Prime class action lawsuit that ““Amazon advised FBA Vendors to include the amount they would have charged for shipping in their item prices in order to maximize total revenue and profit margins,” and in return promoted these results above those from other sellers.
Ekin is represented by Stephen J. Sirianni, Chris R. Youtz, Richard E. Spoonemore, Eleanor Hamburger, Charles D. Sirianni, and David M. Simmonds of Sirianni Youtz Spoonemore Hamburger.
The Amazon Prime Shipping Class Action Lawsuit is Dr. A. Cemal Ekin, et al. v. Amazon Services LLC, Case No. 14-cv-00244, U.S. District Court for the Western District of Washington.
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2 thoughts onAmazon Wants Prime Shipping Class Action Lawsuit Dismissed
If prime did us wrong they better pay up. I’m sick and tired of being screwed by #2 having to pay an attorney for what is mine, and # 2 for companies doing this all the freakin time with a smack on the hand, how bout give me a belt I’ll teach them , they want to
Wrong people well get ready cause ur about to
Get an ass whooping like our granddad dies once did.
#2, although corporal punishment seems a bit overzealous considering the case at hand, and the sheer amount “granddaddy asswhuppin’s youd have to dole out, I’d have to object to that idea. And #2, even with inflated shipping, Amazon’s super competitive pricing is still, for the most part, the best in the business. Finally, #2, most other retailers have adopted in-store or on-line price matching policies, just to survive in this world, being subjected to the jaw dropping discounts found at Amazon good. Good deals are everywhere if you just put your mind to it.