Pair of Amazon Class Actions Could Bring Claim Opportunities to Hundreds of Millions in the US

A new Amazon antitrust lawsuit alleges that the corporation has been using its monopoly in online retail to overcharge customers and stifle a competitive market in the online retail industry. The lawsuit says that Amazon’s practice of charging referral fees, a fee merchants have to pay to Amazon in order to sell products on its website, has led to an inflation of prices for products on their website. The plaintiffs argue that this fee has been passed onto customers which has led to overpriced products.

That’s not all. Amazon also does not allow merchants on its platform to market their products elsewhere at prices that are lower than the ones listed on Amazon, creating a price-fix. Amazon even goes so far as to undercut the same merchants that sell items on their website. Since merchants have to pay a referral fee and their prices are overpriced, Amazon markets the same products under Amazon’s name for a price that is much lower than the merchants, undercutting the competitive market. The plaintiff is seeking a class period of May 2017 to today for consumers who bought from Amazon.

The online retail class action comes on the heels of another lawsuit involving Amazon’s Alexa. This class action alleges that Alexa is recording your private conversations and storing them for Amazon’s use. The plaintiffs claim that Alexa’s use of smart speaker technology allows it to eavesdrop on conversations that are taking place in the room it is in, record those conversations, and then store them in a giant Amazon database containing billions of private conversations from Alexa users. Amazon then has full control over whatever they want to do with them.

The Alexa device has to be “awake” to record conversations. The suit alleges that it can wake up to words that are not intentionally meant to wake it up and the recordings are of people who are not actually talking to Alexa. Oh, and did I mention, Amazon doesn’t ask for your consent to do any of this.

This class action is seeking to represent all people who bought and used Amazon’s Alexa in Washington, Maryland, and Pennsylvania. They are asking for monetary compensation and a deletion of the recordings they have stored from all class members. 

As always Certificate Clearing will continue to update you on the latest in the class action realm and is your best resource for everything you need to know. Feel free to reach out if you have questions about any class action relevant topics and follow us on social media.

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