Amazon class action alleges Prime price should have decreased after company nixed free Whole Foods delivery

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Amazon Class Action Lawsuit Overview:

• Who: Amazon faces a class action lawsuit.
• Why: The Amazon class action lawsuit alleges Amazon should have decreased the price of its Amazon Prime subscription after it canceled the free Whole Foods delivery benefit.
• Where: The lawsuit was filed in Washington federal court. 

Amazon.com Inc. faces a class action lawsuit alleging it should have decreased the price of an Amazon Prime subscription after it canceled free Whole Foods delivery.

Plaintiffs Joy Pecznick and Gil Kaufman filed the lawsuit May 31 in Washington federal court, alleging the company did away with the free Whole Foods delivery service at a time when the company reaped record profits.

An Amazon Prime membership costs $119 annually and offers members benefits such as free one-day shipping and access to Amazon Music. One of its most popular benefits was free Whole Foods two-hour delivery with a minimum $35 purchase, the Amazon class action lawsuit explains.

Amazon began offering free Whole Foods delivery to Amazon Prime members in February 2018, a benefit that was attractive to many consumers considering whether to pay for a subscription.

Whole Foods free delivery was incredibly popular during the COVID-19 pandemic when consumers were encouraged to stay at home to curb the spread of the disease. The number of Whole Foods deliveries reportedly tripled from 2019 to 2020.

Amazon ends free Whole Foods delivery but fails to offer refunds, reduce Prime membership price

In September 2021, Amazon emailed Amazon Prime members to notify them that it would be charging a $9.95 service fee starting on Oct. 25, 2021, according to the class action.

“This service fee helps to cover operating costs so we can continue to offer the same competitive prices in-store and online at Whole Foods Market,” the Amazon email stated.

Even though Amazon took away this popular and valuable membership benefit, it did not reduce the $119 price of an Amazon Prime subscription or offer partial refunds, the plaintiffs claim.

“Hundreds of thousands, if not millions, of Amazon Prime members paid for a membership because they wanted to take advantage of Prime’s free Whole Foods delivery service,” the Amazon Prime class action lawsuit says. “As a result of Amazon’s unfair business practices, consumers paid $119 for a service that was unfairly terminated. Prime members did not receive the benefit of their membership bargain.”

The plaintiffs filed the Amazon class action lawsuit on behalf of themselves and a proposed class of Amazon Prime members in the United States who ordered Whole Foods free delivery and were annual members on Oct. 25, 2021 when the $9.95 delivery fee was introduced.

Amazon also faces a class action lawsuit alleging it falsely advertised free Audible audiobook titles with an Amazon Prime membership and charged members without their permission.

Are you an Amazon Prime member who ordered free Whole Foods delivery before Amazon started charging a fee? Tell us what you think of the Amazon class action lawsuit in the comments below!

The plaintiffs are represented by Charles M. Greenberg of Triad Law Group and Thiago M. Coelho, Jonas P. Mann and Jennifer M. Leinbach of Wilshire Law Firm PLC.

The Amazon Class Action Lawsuit is Joy Pecznick, et al. v. Amazon.com Inc., Case No. 2:22-cv-00743, in the U.S. District Court for the Western District of Washington.

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