Amazon Must Face US Nationwide Class Action Over Third-Party Sales (reuters.com) 25
An anonymous reader quotes a report from Reuters: Amazon.com 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 (PDF) 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.
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 argued 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 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 argued 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.
Too large to be manageable? (Score:3)
Translation: We fucked up so hard we violated Physics. The Dildo of Consequence would break Causality and create an Accountability Singularity that will destroy us all.
Jeff Bozos can't have it both ways (Score:5, Insightful)
288 million customers and billions of transactions, marking one of the largest-ever in the United States
and
Amazon argued that the class was too large to be manageable and that the plaintiffs failed to show its alleged conduct had a widespread effect
So the "class was too large" to have "a widespread effect"? Is that REALLY the defense you want to run with Jeffy? Smells to me like desperation.
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You mean Andy right? Since he replaced Bezos as CEO a while back...
evil contracts (Score:3)
> restricting third-party sellers from offering their products for lower prices elsewhere on rival platforms
This is simply unfair an needs to end.
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Let the seller beware - they agreed to the terms of the contract to sell on Amazon.
Having said that, the reality is that most of the third party sellers wouldn't have ever been noticed as a seller if they weren't on Amazon. Sure, google has a shopping tab, and I've looked there occasionally. But I don't look often. If I'm looking for something really expensive, it might be worth a search to see if I can find a cheaper seller that looks reputable. But for cheap items that aren't even worth going to try to f
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Invisible hand bullshit. A choice that is not a choice is not a choice.
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Since quitting Amazon Prime I've found that I can find things on eBay and it is almost always cheaper.
Most sellers offer free shipping via USPS and it's often faster than Prime "2 day" shipping to our somewhat remote community.
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I have a hard time seeing how this could possibly succeed as well. Yes, it feels unfair to the consumer, but also yes the seller agreed to it in exchange for being on such a huge platform.
Should we make such contracts illegal? yes. Are they already? no.
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Besides 'unconscionable clauses' being void, the sellers likely have a tortuous interference of contract claim too.
Unfortunately two things: they can't afford to take on Amazon because the Courts system is not a Justice system and this class-action isn't on behalf of the sellers.
The reason it's unconscionable is that Amazon charges various fees that a seller does not have to pay on his own website so his cost can be lower with direct sales. This hits small businesses hardest that are trying to make entry i
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In general, I would agree. But "most favored" clauses are not exactly as uncommon as you probably think. In fact, the US government itself insists on "most favored" terms in most GSA and other procurement contracts. So they're hardly ones to talk. Instead of targeting the company, because we don't like Bezos these days; we should target the behavior and ban those clauses... everywhere.
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Contracts written on flypaper
A lot of people! (Score:2)
How much can amazon afford to give every single person on earth?
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Based on current calculations, if we bled Amazon of its total *net* worth, that would give every current living human just under $300. That's almost enough for a happy meal and a full tank of gas!
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That calculation is for the entire world population of 8 billion.
If we used just the US population (which is the target of the class action) it would be about 20 times higher.
Win-win!
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Unless you own stock in the company, either directly or through an index fund. I'm pretty sure all the people with an ownership interest in AMZN wouldn't think it a win-win. And I'm not sure where the number came from either - stockholders equity / 8 billion would be around $42 TTM.
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Just looked up Amazon market cap = $2.44 Trillion
2.44 trillion / 342 million
$7134.5
Who wouldn't want an extra $7134 ?
Also, they would be free of the "Amazon tax".
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That calculation is for the entire world population of 8 billion. If we used just the US population (which is the target of the class action) it would be about 20 times higher. Win-win!
I answered the question as posed. I didn't bother correcting the OP. I'm tired of being labeled a pedant every time I post a correction.
The monopolists' creed (Score:3)
Amazon argued that the class was too large to be manageable
"We're too big to fail!"
"We're too big to sue!"
I say "too big" has failed.
Superclass: Bitten by a radioactive class! (Score:3)
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Not only that, they'd love to 1099 you for that nickel, but sadly it would cost them more in administration costs then the nickel they are sending to you.
Who cares. (Score:2)
The story immediately above this one shows that even when supermassive companies make it to the courts they get at most a slap on the wrist along with a nasty written letter asking them to not do it again.
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too big to punish
Deception run rampant on Amazon (Score:2)