Why Amazon is facing a price gouging lawsuit in US
A US judge allowed a lawsuit against Amazon to proceed, alleging the company profited from price gouging essential goods during the COVID-19 pandemic.Summary
A proposed class-action lawsuit against Amazon is moving forward after a US judge denied the company’s request to dismiss the case. Filed in Seattle, Amazon’s headquarters, the lawsuit accuses the company and its third-party sellers of price gouging essential goods – including food, household items, pain relief, toilet paper, and face masks – during the COVID-19 pandemic. Plaintiffs allege price increases of up to 1,800% on certain items.
Judge Robert Lasnik rejected Amazon’s defense that Washington state consumer protection laws were too vague to apply to the alleged price gouging, stating consumers had “no meaningful choice” but to purchase from Amazon due to pandemic-related shortages and restrictions. The lawsuit seeks damages for consumers who paid inflated prices between January 31, 2020, and October 20, 2022.
Attorney Steve Berman, representing the plaintiffs, stated that internal Amazon documents reveal the company was aware of price gouging and had assured state attorneys general they were working to prevent it. As of the time of this report, Amazon has not publicly commented on the lawsuit or the judge’s decision.
(Source：Newsbytes)