Amazon could be forced to pay £900million back to its UK customers after a class action lawsuit was issued against it. The legal action claims shoppers are tricked into buying products sold or shipped from Amazon instead of competitors.
The lawsuit is being brought forward by consumer rights champion Julie Hunter, who claims that Amazon's Buy Box is anti-competitive. The Buy Box is part of Amazon's website which suggests which retailer shoppers should purchase items from.
Ms Hunter says that Amazon unfairly highlights its own products and hides those being sold by competitors. She said: “Nine out of 10 shoppers in the UK have used Amazon, according to surveys, and two-thirds use it at least once a month. Like countless millions of people in the UK, I often use Amazon for the convenience it offers.
“Many consumers believe that Amazon offers good choice and value, but instead it uses tricks of design to manipulate consumer choice and direct customers towards the featured offer in its Buy Box. Far from being a recommendation based on price or quality, the Buy Box favours products sold by Amazon itself, or by retailers who pay Amazon for handling their logistics. Other sellers, however good their offers might be, are effectively shut out – relegated down-page, or hidden several clicks away in an obscure corner of Amazon’s website.
“Online shoppers have a right to be treated fairly and to be able to make informed decisions. This lack of transparency and manipulation of choice is an abuse of consumers’ trust, as well as a raid on their wallets. Amazon occupies an incredibly powerful position in the market, making it impossible for consumers to take individual action. Amazon shouldn’t be allowed to set the rules in its favour and treat consumers unfairly. That is why I am bringing this action.”
Ms Hunter is Chair of the Consumer & Public Interest Network, an independent organisation representing consumers in the development of voluntary standards, supported by the UK standards body BSI.
The Buy Box is designed to effectively prevent millions of consumers from navigating the site to find cheaper offers, or better delivery options, for the same product, according to the claim. It suggests that sellers that pay for Amazon's storage and delivery are also preferred in the Buy Box over those who do not.
This manipulation could amount to a breach of Amazon's obligation not to distort competition. The claim seeks damages of around £900m from Amazon.
In July, the Competition and Markets Authority said it was investigating Amazon's business practices. It said it would be looking into how it sets its criteria for selecting businesses for the featured offer.
An Amazon official told the BBC: "This claim is without merit and we're confident that will become clear through the legal process. Amazon has always focused on supporting the 85,000 businesses that sell their products on our UK store - and more than half of all physical product sales on our UK store are from independent selling partners.
"We always work to feature offers that provide customers with low prices and fast delivery."
