Amazon, the world’s largest online shopping platform, faces a class-action lawsuit alleging violations of the US Consumer Protection Act. Plaintiffs claim the company withheld opportunities for customers to buy products at lower prices. Reuters reported on the matter.
A complaint filed in federal court in Seattle asserts that Amazon’s Buy Box recommendation algorithm often masks cheaper options with faster delivery. The document also notes that marketplace users accept the Buy Box offer in 98 percent of cases, often believing the platform has identified the best deals for them.
According to the filing, the Buy Box algorithm prioritizes profits for Amazon over the welfare of customers by steering choices for shoppers.
The lawsuit suggests the marketplace helps generate additional revenue for third-party sellers participating in the Fulfillment by Amazon program. Companies in this program pay fees for storing, packing, delivering, and returning orders.
The case seeks damages for alleged infringement by Amazon dating back to 2016, per plaintiffs’ attorney Steve Berman. The specific monetary amount is not disclosed in the filing.
In a separate matter, a Moscow court fined a unit of Amazon after it refused to remove information deemed banned in Russia, a development that has drawn attention to global compliance practices across markets.