Class Action: Amazon Took Advantage Of Its Monopoly, Overcharged Millions Of Online Customers
Online retail giant Amazon has been accused by a recent class action lawsuit of using its monopolistic grip in the e-commerce market to overcharge millions of customers of the products they have bought on the company’s online marketplace platforms.
Plaintiff Megan Smith Takes Amazon To Court
According to reports, Amazon is facing potential penalties after they allegedly violated the Sherman Act. Filed by complainant Megan Smith, the Amazon Antitrust Class Action Lawsuit is contending that Amazon took advantage of its large market share to impose its will towards its partner merchants and retailers, and online customers.
Smith shared that Amazon charges its partner retailers a referral fee in order for them to be allowed access to the company’s wide-reaching online selling platform. These charges are then passed on to the unknowing customers as a result of Amazon’s policy towards its merchants.
Furthermore, she detailed that sellers who wish to work with Amazon are not allowed to offer their products at a lower price than what they are offered at the company’s online marketplace site.
Accused of different price-fixing schemes like the ones mentioned before that are illegal under the Sherman Act law, Smith also adds that Amazon goes out of its way to compete with online retailers by offering the same products at a much lower price.
Amazon Manipulated The Marketplace It Holds – Allegations
The Amazon Antitrust Class Action Lawsuit 2021 retorted that these scenarios were only made possible due to their unquestionable dominance in the online marketplace scene. The situation is said to be abnormal and is non-existent in a truly free market. It furthered that the abovementioned anticompetitive behavior and acts perpetrated by Amazon are hurting millions of online merchants and buyers.
Plaintiff Smith is asking the court to allow the certification of a Class consisting of nationwide Amazon customers who have made purchases on the company’s e-commerce platform from May of 2017 and beyond. It is reported that the Nationwide Class could potentially consist of more than a hundred million customers.
Aside from the Class certification, she is requesting the court to hold Amazon accountable for its misdeeds by paying up the necessary amounts for the damages it has caused.
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Headed by one of the world’s richest individuals Jeff Bezos, Amazon is one of the so-called Big Five technological companies in the country alongside industry giants Apple, Facebook, Google, and Microsoft.
Amazon is a wide-reaching company that offers a plethora of products and services, with its online marketplace platform the most well-known amongst them all.
Founded in 1994, the company has grown to be one of the biggest companies in the world, with recorded revenue of more than $386 billion in 2020. Presently, the company has acquired several companies and has incorporated them all into Amazon’s system as subsidiaries. Some of them are Audible, Whole Foods, and Zappos.
Editor’s Note on Amazon Antitrust Class Action Lawsuit 2021:
This article features the latest class action lawsuit filed against Amazon after the company allegedly took advantage of its market dominance and has perpetrated anticompetitive behavior illegal in the eyes of the law.
Case Name(s) & No.(s): Megan Smith v. Amazon.com, Inc.; Case No.: 2:21-cv-00838
Jurisdiction: United States District Court for the Western District of Washington
Products/Services Involved: Sherman Act
Allegation(s): Amazon has behaved illegally by imposing several price-fixing methods that are tantamount violations of the Sherman Act.
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