Steven Cohen  |  November 13, 2019

Category: Legal News

Top Class Actions’s website and social media posts use affiliate links. If you make a purchase using such links, we may receive a commission, but it will not result in any additional charges to you. Please review our Affiliate Link Disclosure for more information.

amazon app on smartphoneA class action lawsuit has been filed against the online retailer Amazon in Canada claiming that the company does not compete with third-party sellers, and overcharges Canadian consumers for books, music, movies, and DVDs.

Plaintiff Emily Sweet says Amazon has ceased this conduct in the United States, but not in Canada, and argues that Amazon should be held accountable for this behavior.

The plaintiff alleges that a major piece of Amazon’s business plan is the “Buy Box,” where customers can start their purchase by placing items into “shopping carts.”

The Amazon class action lawsuit states that customers also see more purchasing options, labeled as, “More Buying Choices” or “Other Offers.”

“The Buy Box accounts for as much as 80% of Amazon’s total sales revenues from its websites and marketplaces,” the Amazon class action lawsuit claims. In addition, the “Buy Box” has been labeled as “the Internet’s $80 Billion Button,” the plaintiff alleges.

Sweet claims that, starting in 2000, Amazon agreed to allow third-party sellers compete for certain products in the Buy Box. Sweet says that one of the major determinants for control of the Buy Box is price.

“The seller with the lowest price stands a significantly improved chance of capturing the Buy Box for that item,” the Amazon class action lawsuit states.

The plaintiff claims that competition for control of the Buy Box is good for consumers, as it results in lower prices from Amazon and third-party resellers.

In addition, Amazon’s service terms and program policies with third-party sellers do not allow new books to be included in the Buy Box, claims the plaintiff. Also, no other products are included in this exemption.

The plaintiff argues that only Amazon can thus sell new books via the Buy Box.

“The agreement between Amazon and Third-Party Sellers not to compete for the Buy Box for Books is contrary to the Competition Act, s 45 (‘Unlawful Agreement’) or is at minimum an attempt to commit acts contrary to the Competition Act, s 45,” the Amazon class action lawsuit states.

The plaintiff claims that, when shopping for books on Amazon, the Buy Box does not show customers that Amazon has full control of the Buy Box.

The Amazon class action lawsuit states that the senior officers and directors of Amazon were fully cognizant of the agreement between Amazon and third-party sellers and were active in implementing the terms of the agreement.

Because of the exclusive control of the Buy Box for books, Amazon can charge high prices for these products because it does not have any competition from third-party sellers.

“In addition, or in the alternative, Amazon benefits from control of the Buy Box to sell new Books because it can use its exclusive position to make preferential arrangements with publishers or other suppliers for that sales channel, thereby increasing Amazon’s margins on Books, even in circumstances where Amazon’s prices appear lower than its competitors,” the plaintiff alleges.

In May 2017, third-party resellers were allowed to compete for the Buy Box for new books on Amazon in the United States, but the conduct continues for those in Canada, the Amazon class action lawsuit states.

Did you purchase books on Amazon in Canada? Leave a message in the comments section below.

The plaintiff is represented by Douglas Lennox of Klein Lawyers LLP and Mathew Good of Mathew P Good Law Corporation.

The Amazon Class Action Lawsuit is Sweet v. Amazon.com, et al., Case No. CV-18-609418-00CP, in the Ontario Superior Court of Justice.

We tell you about cash you can claim EVERY WEEK! Sign up for our free newsletter.

  • This field is for validation purposes and should be left unchanged.


8 thoughts onCanadians Overcharged For Books On Amazon, Class Action Says

  1. Stephanie says:

    I have purchased several books and other items on Amazon. I’m disappointed that a company I respected had done this to loyal customers. Would like more info pls.

  2. Paula Littzen says:

    I have a few issues with Amazon.ca. Yes, I have purchased numerous books on both Amazon.com and Amazon.ca. I bought 2 best selling books for business people, for my son’s birthday in April. I obtained gift receipts when ordered, so my son could return/exchange them if he had already read them, after I gave them to him on his birthday. I found out the other day he had already read them and called Amazon, I was aware that when you buy an item from Amazon without a gift receipt, there was a 1 month return window from date of purchase. A gift receipt provided with a item bought as a gift, makes no mention that the receiver of such gift ( with gift receipt) has a limited amount of time to return/exchange the gift. When I called Amazon.ca Customer Service two days ago, I learned a $9.00 restocking fee would be charged to return these two books! People do not obtain gift receipts for recipients of the gifts, knowledgeable of this restocking fee, or that the receiver has only a short to no window to return/exchange the gift for full price paid. To me, it is similar the the prepaid Visa Cards with the disappearing balance from fees. Thoughts? I find this bad practise of Amazon is not disclosed to the purchaser, and the whole gift receipt practise on Amazon is a money grab. The consumer, being unaware of the limitations of “the Amazon Gift Receipt”, has no clue that the recipient of the gift with receipt will suffer loss of the full value of the gift, if returned, or desires an exchange. Walmart, and other stores, accept returns with receipt for full credit/exchange for months or longer. I am also wondering how many times people I have given gifts with receipts from Amazon have experienced this loss! It is an embarrassment for me to know this may have occurred many times without my knowledge!!! I would be shocked if someone gave me a gift with a gift receipt and I could not return it for full refund, full credit, or full exchange value. I will not be shopping on Amazon much anymore. Shady practises!!!

  3. Lenak Gunda says:

    Books purchased from Amazon of course.

  4. Alison Legault says:

    I have purchased books off Amazon and know many others who have also. I would like more info about this.

    Thanks

  5. Alastair Smith says:

    I have been purchasing books on amizon and other products which I have noticed price increases on certain products that I searched, then go the following day to purchase only to fine the price has increased from the previous days search.
    Please keep me informed.

    Thank you,
    Alastair Smith

  6. Stephanie says:

    I have purchased many books on Amazon.ca and would appreciate to receive more information. Thank you.

  7. Kim Bradley says:

    I have purchased a number of books off Amazon.ca. Would appreciated some information. Thank you

  8. Donald E Waller says:

    I have purchased numerous books from Amazon in Canada and I am interested in this pricing issue.

Leave a Reply

Your email address will not be published. By submitting your comment and contact information, you agree to receive marketing emails from Top Class Actions regarding this and/or similar lawsuits or settlements, and/or to be contacted by an attorney or law firm to discuss the details of your potential case at no charge to you if you qualify. Required fields are marked *

Please note: Top Class Actions is not a settlement administrator or law firm. Top Class Actions is a legal news source that reports on class action lawsuits, class action settlements, drug injury lawsuits and product liability lawsuits. Top Class Actions does not process claims and we cannot advise you on the status of any class action settlement claim. You must contact the settlement administrator or your attorney for any updates regarding your claim status, claim form or questions about when payments are expected to be mailed out.