UK lawsuit accuses Amazon of over-charging consumers by GBP 1 billion+

Occurred: October 2015-June 2020

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Amazon stands accused of over-charging UK consumers in a lawsuit brought by a UK consumer champion.ย 

Robert Hammond is seeking up to GBP 1.3 billion in compensation for 49.4m UK consumers in a claim that argued that Amazon overcharged consumers by more than GBP 1 billion for products bought on its Marketplace between October 1, 2015 and June 1, 2020.

The lawsuit also claimed that consumers accepted Amazon's recommendation and purchased through the "Buy Box" without viewing other offers over 80 percent of the time, and that the company's proprietary algorithm manipulated product offer results and steered consumers towards more profitable offerings for Amazon while obscuring potentially more affordable options.

It also said that Amazon commanded about two-thirds of the UK online marketplace market, with its platform being the first search destination for 70 percent of UK shoppers.ย 

The Competition Appeal Tribunal allowed Hammond's claim to go ahead over a competing claim on the basis that it's methodology for proving Amazon's wrongdoing was stronger.

This evidence collectively formed the basis of Hammond's argument that Amazon's Buy Box practices violated UK competition law by artificially inflating product prices and illegally stifling competition.

System ๐Ÿค–

Operator: Amazon
Developer: Amazon

Country: UK

Sector: Retail

Purpose: Determine seller

Technology: Pricing algorithm; Machine learning
Issue: Business model; Competition/price fixing; Transparency

Legal, regulatory ๐Ÿ‘ฉ๐Ÿผโ€โš–๏ธ