Amazon shoppers in the UK could receive a share of £900m in compensation, once a legal claim against the technology giant is submitted.
The proposed lawsuit alleges that the company violated competition law and caused consumers to pay higher prices.
It is led by consumer rights champion Julie Hunter, who says products sold on Amazon.co.uk and the Amazon app hide better-priced deals.
The collective action has to be filed before the end of the month.
Started as an online bookseller, Amazon is now the world’s largest e-commerce company.
Over 80% of purchases on the site are made through featured offers in the “Buy Box”.
But Ms Hunter alleges that independent sellers are excluded from the Buy Box, even when they offer the same product for cheaper or better terms – thereby breaching UK and EU competition law. Is.
“Nine in 10 UK shoppers have used Amazon, according to the survey, and two-thirds use it at least once a month,” he said.
Ms Hunter alleged that Amazon “uses design tricks to manipulate consumer choice and direct consumers to the features offered in their Buy Box”.
According to Ms. Hunter, this featured offer is the only one that is understood and chosen by the majority of consumers, many of whom trust Amazon and mistakenly believe that it is the best deal.
The legal action, which will be filed at the Competition Appeal Tribunal in London, will seek an estimated £900 million in damages from Amazon.
David Green, from the London Solicitors Litigation Association, told it was difficult to predict the chances of success.
“Obviously Amazon will fight the case at all stages, including class certification, but the tribunal has recently issued several orders for similar actions confirming the opt-out process,” he said.
“Big tech companies are well-resourced to fight back.”
Who is Eligible?
Anyone living in the UK who has made a purchase on Amazon.co.uk or the Amazon mobile app since October 2016 is an eligible member of the claimant class.
The proposed lawsuit is an opt-out class action claim, which means that the affected buyers, on whose behalf the class action is brought, will not pay costs or fees to participate.
Lesley Hannah, one of the partners at Hausfeld and Co LLP, who is leading the litigation, said: “The competition laws are there to protect everyone. They ensure that individuals can make real and informed choices and are not simply coerced into making choices that benefit the companies they interact with.
“Fairness is at the heart of competition law – and consumers are not being treated fairly by Amazon.”
Ms Hunter added: “Amazon should not be allowed to set the rules in their favor and treat consumers unfairly. That’s why I’m taking this action.”
An Amazon official said: “This claim is without merit and we are confident that will be cleared up through the legal process.
“Amazon has always been focused on supporting the 85,000 businesses that sell their products on our UK store – and more than half of all physical product sales on our UK store go to independent seller partners. are from
“We are always working to highlight offers that provide customers with low prices and fast delivery.”
Other Amazon Investigations
The European Commission is conducting two formal antitrust investigations against Amazon.
One, from November 2020, is examining the same alleged “self-dealing” by Amazon as alleged in the UK claim.
The commission’s initial finding was that Buy Box’s rules and standards unduly favored Amazon’s own retail business and marketplace sellers using its logistics and delivery services.
It is currently reviewing the commitments offered by Amazon to address these concerns.
In July 2022, the Competition and Markets Authority (CMA) announced that it was investigating Amazon’s business practices, including how it set criteria for selecting featured offers. .
The CMA indicated that its investigation by the European Commission is ongoing.
