Amazon.com faces a proposed US class action lawsuit, accusing the online retailer of violating consumer protection laws by directing hundreds of millions of shoppers to higher-priced items to earn extra fees, as reported by Jonathan Stempel for Reuters.
The complaint alleges that shoppers choose Amazon's suggestions nearly 98% of the time, mistakenly believing they are the best prices. I Photo: GoToVan
According to the complaint filed in federal court in Seattle, Amazon's algorithm for selecting items to display in its "Buy Box" often hides lower-priced options with faster delivery times.
Referring to a recent antitrust case against Amazon by the US Federal Trade Commission (FTC) and 17 states, the complaint alleges that shoppers choose Amazon's suggestions nearly 98% of the time, mistakenly believing they are the best prices.
The lawsuit claims Amazon designed the algorithm to favor third-party sellers participating in its Fulfillment By Amazon program, which pay significant fees for inventory storage, packing, shipping, and other services.
The complaint alleges that Amazon's Buy Box algorithm prioritizes the company's profits over consumer well-being by deceptively favoring higher-priced items.