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 have made quite a few purchases from Amazon over a course of time and then find out that I have to be hooked up with their Prime just because I use their services try to cancel them get it all done you think turn around and they hook you back up again and now they’re charging unauthorized charges off your credit cards I discovered the two I had in there if they can’t get it off one they’ll take it off another without your authorization I got one of my cards out of there and then discovered that they’re into my Capital One and charging me for movies that I never rented and I can’t seem to get rid of their Prime other than I’m going to have to put a stop on my card cure the problem but I will not purchase anything from these guys ever again I don’t know what’s wrong with them but they need to be slammed
I have purchased thousands of dollars in merchandise from Amazon. I also have returned alot of items. A few come on the statements as returns, the rest are supposedly put in a gift card that does not show where it came from. So I am not sure if I was refunded for all my returns or not. Is there a class action for this?
Is it to late to be added?
I have 3 Alexa devices in my home, please add me to this class action.
Please add me. I’ve had multiple issues with Amazon.
Has anyone else had serious issues with amazon double charging??? I use my PayPal debit to mostly purchase from amazon and PayPal confirmed with me in October of last year that, in fact amazon was double charging me for many of my purchases. Amazon claimed those charges were “pending” transactions and when the item ships I actually get charged. This wasn’t the case but in fact I was being charged twice. Watch your cards and statements close if you shop on amazon because I had nearly 1000$ in double charges over the course of 6 months or so. Does anyone know if there’s a class action lawsuit anywhere for this!? I know so many people this has been happening to as well. Not sure how to get a class action started. Any info would be appreciated! I just noticed the same thing happened tonight where my mastercard was charged once a few days ago, and once again tonight. My balance dropped both times. Has anyone else dealt with this with amazon? It only seems to be amazon as well, other online retailers I have no issues with. Would love to hear thoughts and opinions on this, I can’t find much about this anywhere online or even on fb.
Yes . I am having the same problem with Amazon . They only send what I order if I pay twice. I need help.
It’s important to me as a consumer to be apart of this action. On occasion, I contacted sellers regarding the ridiculous hikes in pricing, I. e. A 1 pound box of baking soda for $23.48, of which I was charged. In turn, I have complained to Amazon on the issue seeking reimbursement. To date I have not received any correspondence from either seller or Amazon. Their practices are unbecoming and unprofessional.
They closed my account because of too many cancellations and returns. When they were the ones constantly cancelling and refunding me because they cannot keep up with demand. They punish the customers for their problems.
I need to be part of this lawsuit!, please tell me how to start, my account was closed for no reason without explanation.
same here i lost 7 figures for them shutting down my account for no reason and disposed hald a million dollar of inventories.
I think Amazon needs to hire new and possibly actual degree holding educated business workers who actually know what they are doing! I was locked out of my account and my purchases denied due to a sudden jump in my purchases. Well yeah it was Christmas time! Amazon needs to wise up.
I have had a lot of cancelled orders. If I had known I would have gotten the same items from another company. I’m in.
Yes, I need to be part of this lawsuit.
When will corporations be charged a real fine, then the current small “slap-on-the-wrist” measly fines?