A Seattle judge has ruled against Amazon’s effort to dismiss a proposed class-action lawsuit accusing it of price-gouging during the Covid-19 pandemic, paving the way for the lawsuit to go ahead.
US District Judge Robert Lasnik said Amazon’s arguments that Washington state consumer laws were vague as applied to pricing, and did not cover alleged price gouging, were “unpersuasive”, Reuters reported.
‘Profiteering’
He said it was plausible that product shortages, public health mandates and the shift to online purchasing left consumers “no meaningful choice but to purchase from Amazon despite the allegedly unfair prices it was charging”.
The lawsuit on behalf of consumers accuses Amazon of failing to prevent sellers from charging “flagrantly unlawful” prices on its platform for staples such as food.
Amazon also inflated prices on its own inventory to “profiteer off consumers in desperate need”, the lawsuit alleges.
The complaint says prices for Aleve pain relief tablets rose 233 percent, Quilted Northern toilet paper rose 1,044 percent, Arm & Hammer bicarbonate of soda rose 1,523 percent, and some face masks rose 1,800 percent.
‘Unfair’ prices
Steve Berman, a lawyer representing the plaintiffs, told Reuters the decision was an “important win” for consumers, and said internal Amazon documents showed the company was aware of price gouging and told state attorneys it was trying to prevent it.
The action seeks damages for people who paid allegedly unfair prices for food and other consumer goods on Amazon from 31 January, 2020, to 20 October, 2022, after which Washington and most other states ended Covid-related states of emergency.
