Judge Denies Amazon’s Motion to Dismiss Price Gouging Lawsuit

A U.S. judge on Monday rejected Amazon.com’s bid to dismiss a proposed class-action lawsuit accusing the online retailer of price gouging during the COVID-19 pandemic.

U.S. District Judge Robert Lasnik, based in Seattle—Amazon’s hometown—found the argument that Washington state consumer protection laws were vague and did not cover the alleged price gouging to be “unpersuasive.” The judge noted that it was plausible to infer that product shortages, public health directives, and the shift to online purchasing left consumers with “no meaningful choice but to purchase from Amazon despite the allegedly unfair prices it was charging.”

Consumers have accused Amazon of failing to prevent sellers from using its platform to charge “flagrantly unlawful” prices for essential items such as food and household staples. Furthermore, they allege that Amazon inflated prices on its own inventory to “profiteer off consumers in desperate need.” The complaint highlights staggering price increases, including a 233% rise on Aleve pain relief tablets, a 1,044% increase on Quilted Northern toilet paper, a 1,523% hike on Arm & Hammer baking soda, and an astonishing 1,800% surge on certain face masks.

As of now, Amazon and its legal team have not responded to requests for comment regarding the lawsuit. However, Steve Berman, a lawyer representing the plaintiffs, described the ruling as “an important win for consumers.” He further stated that internal documents from Amazon indicated the retailer was aware of what constituted price gouging and had assured state attorneys general that it was making efforts to prevent such practices.

The lawsuit seeks damages for individuals who paid “unfair” prices for food and other consumer goods on Amazon between January 31, 2020, and October 20, 2022, which coincides with the period when Washington and other states lifted COVID-related states of emergency.

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A U.S. judge on Monday rejected Amazon.com’s bid to dismiss a proposed class-action lawsuit accusing the online retailer of price gouging during the COVID-19 pandemic.

U.S. District Judge Robert Lasnik, based in Seattle—Amazon’s hometown—found the argument that Washington state consumer protection laws were vague and did not cover the alleged price gouging to be “unpersuasive.” The judge noted that it was plausible to infer that product shortages, public health directives, and the shift to online purchasing left consumers with “no meaningful choice but to purchase from Amazon despite the allegedly unfair prices it was charging.”

Consumers have accused Amazon of failing to prevent sellers from using its platform to charge “flagrantly unlawful” prices for essential items such as food and household staples. Furthermore, they allege that Amazon inflated prices on its own inventory to “profiteer off consumers in desperate need.” The complaint highlights staggering price increases, including a 233% rise on Aleve pain relief tablets, a 1,044% increase on Quilted Northern toilet paper, a 1,523% hike on Arm & Hammer baking soda, and an astonishing 1,800% surge on certain face masks.

As of now, Amazon and its legal team have not responded to requests for comment regarding the lawsuit. However, Steve Berman, a lawyer representing the plaintiffs, described the ruling as “an important win for consumers.” He further stated that internal documents from Amazon indicated the retailer was aware of what constituted price gouging and had assured state attorneys general that it was making efforts to prevent such practices.

The lawsuit seeks damages for individuals who paid “unfair” prices for food and other consumer goods on Amazon between January 31, 2020, and October 20, 2022, which coincides with the period when Washington and other states lifted COVID-related states of emergency.

Topics
Lawsuits
Legislation