Amazon class action alleges Prime subscribers pay false discount prices

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Amazon class action overview: 

• Who: Amazon.com Inc. is facing a class action lawsuit over its posted discount prices.
• Why: The plaintiff in the Amazon class action claims the Amazon Prime discount that is posted with a product is not a real discount.
• Where: The Amazon class action is filed in federal court in Illinois but applies across the United States.

Amazon.com Inc. is facing a class action lawsuit claiming its posted Amazon Prime discounts are not discounts from a real price. Instead, plaintiffs contend, Amazon.com posts a false price that was not consistently used and then discounts from that price instead. 

The proposed class includes any Amazon customer who purchased a discounted product with a price of $500 or more where the original price posted was not used for at least six months of the previous year.

Lead plaintiff Ben Kinney claims he purchased an LG television on Amazon that was priced at $1,496.99, marked down from $2,499.99, and tagged as “40% off.” After the purchase, the price on the television then changed to $2,199 and stated “$700 off,” according to the class action.

The television, however, was normally sold on Amazon for $1,500 and the price rose to $2,000 for approximately a month, the plaintiff later found out, he claims.

Amazon pricing allegedly violates FTC guidelines

The pricing on Amazon violates Federal Trade Commission (FTC) guidelines for advertising a comparison to former prices, the plaintiff alleges. The FTC states a price comparison must be to a bonafide former price and not an inflated price, where sales weren’t made, that was only created to then claim the item was later on a discount.

The plaintiff claims Amazon Prime discounts regularly violate the law and consumer trust and is asking for damages to be paid by Amazon.com Inc. along with the costs of the case including court and attorney’s fees, as well as any further relief that the court sees fit.

The company is also facing a class action lawsuit in federal court in Oklahoma for allegedly sending unsolicited text messages.

Have you paid for a product marked as discounted but later found out you paid the normal price? Let us know in the comments.

The plaintiff is represented by Daniel A. Edelman of Edelman, Combs, Latturner & Goodwin LLC.

The Prime discount class action lawsuit is Kinney, et al. v. Amazon.com Inc., et al., Case No. 1:23-cv-02523, in the U.S. District Court for the Northern District of Illinois, Eastern Division.

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