Amazon could pay UK shoppers £900m compensation

The proposed lawsuit alleges that the company violated competition law and caused consumers to pay higher prices. Amazon could pay UK shoppers £900m compensation

It is led by consumer rights champion Julie Hunter. Who says products sold on and the Amazon app hide better-priced UK shoppers £900m deals.

The collective action has to be filed before the end of the month.

Started as an online bookseller, Amazon is now the world’s largest e-commerce company.

Over 80% of purchases on the site are made through featured offers in the “Buy Box”.

But Ms Hunter alleges that independent sellers are excluded from the Buy Box. Even when they offer the same product for cheaper or better terms – thereby breaching UK and EU competition law. Is.

“Nine in 10 UK shoppers have used Amazon, according to the survey. And two-thirds use it at least once a month,” he said.

Ms Hunter alleged that . Amazon uses design tricks to manipulate consumer choice and direct consumers to the features offered in their Buy Box..

According to Ms. Hunter This featured offer is the only one that is understood and chosen by the majority of consumers. Many of whom trust Amazon and mistakenly believe that it is the best deal.

The legal action which will be filed at the Competition Appeal Tribunal in London. Will seek an estimated £900 million in damages from Amazon.

David Green, from the London Solicitors Litigation Association, told BBC News it was difficult to predict the chances of success.

“Obviously Amazon will fight the case at all stages. Including class certification, but the tribunal has recently issued several orders for similar actions confirming the opt-out process,” he said.

Who is eligible?

Anyone living with inside the UK who has made a buy on United Kingdom or the Amazon cell app on the grounds that October 2016 is an eligible member of the claimant magnificence.

The proposed lawsuit is an opt-out class action claim, this means that the affected buyers, on whose behalf the magnificence movement is brought. Will now no longer pay expenses or charges to participate.

Lesley Hannah, one of the partners at Hausfeld and Co LLP. Who’s leading the litigation, said: “The opposition laws are there to shield everyone. They make certain that people capable of make actual and informed picks and now no longer without a doubt be forced to make choices that advantage the organizations they have interaction with.

“Fairness is on the coronary heart of opposition law – and clients aren’t being handled pretty with the aid of using Amazon.”

Ms Hunter added . Amazon must now no longer be allowed to set the regulations of their want and deal with clients unfairly. That’s why I’m taking this movement.”

An Amazon legit said. This declares is without advantage, and we’re assured with a purpose to be cleared up through the criminal process.

“Amazon has constantly been targeted on helping the 85,000 companies that promote their merchandise on our UK keep – and greater than 1/2 of of all bodily product income on our UK keep are from unbiased promoting companions.

“We are constantly running to spotlight gives that offer clients with low charges and rapid delivery.”

Other Amazon investigations

The European Commission is conducting two formal antitrust investigations against Amazon.

One, from November 2020, is examining the same alleged “self-dealing” by Amazon as alleged in the UK claim.

The commission’s initial finding was that Buy Box’s rules and standards unfairly favored Amazon’s own retail business and marketplace sellers using its logistics and delivery services.

It is currently reviewing the commitments offered by Amazon to address these concerns.

In July 2022, the Competition and Markets Authority (CMA) announced that it was investigating Amazon’s business practices. Including how it set criteria for selecting featured offers.

The CMA indicated that its investigation by the European Commission is ongoing.

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