Purchasing Items On Amazon Suggested By “Buy Box”? Lawsuit Claims: Why Are You Paying More for Expensive Items?
Amazon News: A class action complaint filed in the US alleges that the well-known e-commerce giant violated consumer protection laws by pushing users toward more expensive items in order to increase revenue. According to Reuters, the complaint, which was filed in a federal court in Seattle, claims that the company’s algorithm hides items with quicker delivery times but at cheaper prices from consumers in the “Buy Box” area.
Citing the US Federal Trade Commission’s (FTC) and 17 states’ antitrust complaint against the corporation, the lawsuit said that, on average, 98% of customers choose to purchase Amazon’s selections. According to the lawsuit, people often choose the option with the “Buy Now” or “Add to Cart” buttons, mistakenly believing these to be the greatest deals.
The complaint also said that the tech giant is believed to have built the algorithm to assist merchants who pay fees for inventory management and register for the Fulfillment By Amazon service. “While ostensibly identifying the selection that consumers would make if they considered all the available offers, Amazon’s Buy Box algorithm deceptively favours Amazon’s own profits over consumer well-being,” the lawsuit said.
Robert Selway and Jeffrey Taylor filed a lawsuit against Amazon. According to plaintiffs’ attorney Steve Berman, the two Californians are suing the corporation for damages, alleging that it violated a Washington statute against deceptive trade practices, resulting in a “great burden placed upon its customers” since 2016.
This lawsuit against Amazon is distinct from previous cases using the “Buy Box” since it focuses on the damage that fraudulent business practices cause to customers. Regarding the other, it alleges antitrust breaches since the firm works with sellers who choose not to participate in the Fulfillment program. Regarding further developments, the business is also being sued over the Prime membership. Read more about this topic here.
