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
I constantly order from Amazon monthly please add me
Please add me
I’ve ordered thru Amazon. They do have a hug Monopoly on online shopping, and since they allow other sellers to sell on their platform, they often times see what third party seller is selling for then offer the same thing at the same cost – charging those 3rd party sellers is a way of controlling the market. They profit off people in so many ways- when I was a student and had Prime at the college student cost, they ended up not accepting my proof of student documents and pictures of my student ID card that I sent to them at least 3 different times- so they charged me the full cost per month like $12 I think when it should have been half that. Then, when they used to offer free subscriptions to tv channels for two week free trial theyd end up charging my card so many different fees even after I figured out canceled subscriptions. One year I had a rough time after loosing 3 family members all within short time span. I hadn’t checked my debit card for unauthorized charges. When I finally did check inoticed at least $200 in unauthorized fees charged by Amazon and Amazon Prime. I called to report charges they told me I couldn’t or they could not do anything about it because it had passed a specific timeframe. I told them at the time I was basically a single parent of two young children, worked, volunteered ontop of being college student and only brought in less than $10,000 annually- I NEEDED that $200 plus back for my family. Amazon service did not care kept stating nothing they can do it was past deadline to submit a complaint or ask for reimbursement. They are such a huge company that used to have a policy of customer always first. That went out the window as soon as they became a giant ontop of scamming fees out of regular customers now they scam sellers too knowing those charges will fall back on consumers. It’s not right.
It would be most helpful to know if this allegation potentially applies only to specific products/services or if this claim is alleged against ALL PURCHAS TRANSACTIONS completed via Amazon.com or its subsidiaries (such as Amazon Fresh, etc.). Personally, I’ve spent tens of thousands of dollars with Amazon since December of 2017…and i must admit, im guilty of not ALWAYS comparison shopping to ensure that I’m paying a fair price before purchasing…though I do try…unless I already happen to be working on an order from somewhere that has something I discover I need in the interim prior to placing my order. Ive found that, at Amazon, ertainly prices for any product on offer through their platform can fluctuate on a daily basis, even more than once in a day, I suppose depending on the volitility of the current market and ALWAYS with consideration to supply and demand, but how would I KNOW that I’d been overcharged on any given purchase…out of MANY, especially up to four years after the fact? I have a difficult enough task ahead of me just trying to find ONE “DECENT” price for just about anything a person needs to buy… let alone finding the absolute LOWEST POSSIBLE PRICE (shipping included)…and, technically speaking… if you’re not 100% CERTAIN that absolutely NO ONE ANYWHERE has the exact same product and quantity you’re buying on offer for a lower price than you’re paying…then you possibly ARE being overcharged…but, as I said…how do you really KNOW?
Please add me!
how do I file a claim?
add me too.
add me
They have been gouging since Covid and I was told by Customer Service that they have the right to do it.
If I did not like it don’t order.
Add me please
Frequent shopper, and Amazon Flex partner. Please add me