Amazon must face US nationwide class action over third
🎧 Listen to AI Summary
From reuters.com: Did you know that Amazon is facing a class action lawsuit involving a staggering 288 million customers? In a groundbreaking ruling, a federal judge in Seattle has certified one of the largest class actions in U.S. history. This lawsuit, initiated in 2021, accuses Amazon of violating antitrust laws by allegedly overcharging consumers for products sold by third-party sellers. The plaintiffs argue that Amazon's policies prevent sellers from offering lower prices on rival platforms, inflating costs for shoppers. As the case unfolds, Amazon denies any wrongdoing and claims the class is too large to manage effectively. Yet, the judge found no evidence to support this argument, highlighting that other courts have successfully handled similar cases with millions of members. The outcome of this lawsuit could reshape how online marketplaces operate, impacting pricing strategies and consumer rights. Learn more about this at reuters.com.
Full Article
Read Original →Amazon logo is seen in this illustration created on February 11, 2025. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tabCompaniesSept 2 (Reuters) - Amazon.com (AMZN.O), opens new tab must face a class action on behalf of hundreds of millions of U.S. consumers over claims that the online retail giant overcharged for products sold by third-party sellers, a federal judge in Seattle has ruled.U.S. District Judge John Chun in an order, opens new tab unsealed on Friday certified a nationwide class involving 288 million customers and billions of transactions, marking one of the largest-ever in the United States. Sign up here.The class includes buyers in the United States who purchased five or more new goods from third-party sellers on Amazon since May 26, 2017.The consumers’ 2021 lawsuit said Amazon violated antitrust law by restricting third-party sellers from offering their products for lower prices elsewhere on rival platforms while they are also for sale on Amazon.Amazon’s policies have allowed the company to impose inflated fees on sellers, causing shoppers to pay higher prices for purchases, the lawsuit said.Amazon has denied any wrongdoing. It has already appealed Chun’s class certification order, which was first issued under seal on Aug. 6.Amazon and attorneys for the consumers did not immediately respond to requests for comment.Amazon argued, opens new tab that the class was too large to be manageable and that the plaintiffs failed to show its alleged conduct had a widespread effect. Amazon also said that since 2019 it has not used a pricing program that the plaintiffs challenged.Chun found there was no evidence at this stage that the size of the class was overbroad. Other federal courts had certified class actions with millions or hundreds of millions of class members, the judge said.The case is Elizabeth De Coster et al v. Amazon.com Inc, U.S. District Court, Western District of Washington, No. 2:21-cv-00693-JHC.For plaintiffs: Steve Berman and Barbara Mahoney of Hagens Berman Sobol Shapiro; Zina Bash of Keller Postman; and Steig Olson of Quinn Emanuel Urquhart & SullivanFor defendant: Karen Dunn, William Isaacson and Amy Mauser of Dunn Isaacson Rhee, and John Goldmark of Davis Wright TremaineRead more:Reporting by Mike ScarcellaOur Standards: The Thomson Reuters Trust Principles., opens new tab