Amazon’s near-monopoly over the online retail market has forced more than 100 million customers to pay more for products than they should have, a new class action lawsuit alleges.
Amazon customers filed the class action lawsuit Wednesday in a Washington federal court, alleging violations of the Sherman Act, including monopolization, Law360 reported.
Plaintiff Megan Smith says Amazon.com charges merchants “referral fees,” which they have to pay in order to sell their products on one of the largest marketplaces in the world.
She says these charges are ultimately passed on to consumers, which would not happen in a healthy, competitive market.
The tech giant’s “policy of overcharging consumers is woven into the fabric of Amazon’s existence,” Smith alleges.
As well as the referral fees, Amazon does not allow sellers to market their products at cheaper rates anywhere else online, creating another type of price fixing. Plus, Amazon goes on to undercut those same merchants on its site by selling the same products at a cheaper rate.
“Because the merchants’ goods are overpriced due to the existence of the ‘referral fees,’ Amazon is able to undercut the merchants’ prices with its own Amazon-label branded goods — vanquishing competition and eliminating consumer freedom to purchase the goods they seek in a normal functioning market free of anticompetitive conduct,” Smith says.
She’s looking to represent a nationwide class of more than 100 million consumers who bought items through Amazon from May 2017 onwards. She’s seeking damages, costs, fees, and an order preventing Amazon’s alleged violations of law.
Meanwhile, Amazon is facing another class action lawsuit over its Alexa device. Plaintiffs in the June class action complaint say the device is eavesdropping on private conversations, recording and storing them on an Amazon server for the multinational company to use at its will.
Plaintiffs say they are taking action against Amazon’s alleged practice of using smart- speaker technology to surreptitiously save permanent recordings of millions of Americans’ voices, all without their knowledge or consent.
What do you think of Amazon’s business practices? Let us know in the comments!
Smith is represented by R. Glenn Phillips of Phillips Law Firm PLLC and Peggy J. Wedgworth, Elizabeth McKenna, Robert A. Wallner and Blake Hunter Yagman of Milberg Coleman Bryson Phillips Grossman PLLC. The Amazon Monopoly Merchant Fees Class Action Lawsuit is Megan Smith v. Amazon.com Inc., Case No. 2:21-cv-00838, in the U.S. District Court for the Western District of Washington.
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2,380 thoughts onAmazon Owes 100 Million Consumers Money, New Class Action Lawsuit Alleges
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former seller and current buyer, i had to teach the “art of the amazon-hunt” to my mini-me. the listings are DEFINITELY buried under their promoted sellers/brands etc. still a go to for me but i see it.
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I use Amazon all the time and have had terrible experience but somehow it seems that is the only convenient place now a days. Please add me to the claim.
Here we go again was going to order my cat food and when I went to buy again 7/21/21 I was surprised the price has triple on their stuff 14.35 a week ago and now 28.00.to 48.00 for 24 cans of fancy feast..Lysol is 20.00 a bottle.they need to be fined and shut down..time to stop them.just look at the prices we should not be overcharge like fhat
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I ordered a patio outdoor dining set and purchased Amazon Home Services – services for assembling upon arrival at my home. Shipment arrived and Amazon home services Representative showed to setup. Then he shared the glass top is damaged and that I needed to call Amazon. Amazon instructed me to contact the seller; which I did and to reschedule the Home Service – appointment. Several days later the glass top came which came which was really too late for my family gathering. Amazon Home Services decided not to show for the process of setting up the patio dining set. I have begged Amazon to return my $1100.00 plus monies paid and to comeback to pickup the four boxes weighing over 40 pounds each. But all I get is the excuse(s) that they filed a claim and so on. Then the seller/amazon issued one return shipment label printed with 5LBS for the now 5 boxes with the instructions that I am to take the boxes weighing 40 pounds each to UPS.
I claimed I have been led to believe that the patio dining set was guaranteed returnable under Amazon printed at the time I placed the order.
How many other customers has Amazon treated this way?
Can you help with getting all my monies returned and having Amazon pickup this very heavy order and return it?
I’ve been using Amazon for years now, on an almost weekly basis. Please add