Amazon.com Antitrust (De Coster)

An independent investigation by Hagens Berman's legal team and expert antitrust attorneys has revealed that Amazon.com has violated federal antitrust price-fixing laws, causing Amazon customers to pay artificially increased prices for products purchased via Amazon. Consumers have now filed a class-action lawsuit against Amazon for driving up prices on its website.

AMAZON'S PRESSURE ON RETAILERS

Amazon operates as a seller, and it opens its marketplace open to third-party sellers, so that Amazon can offer its customers an integrated retail site that lists its own retail goods alongside of goods listed by third-party merchants. For a fee, Amazon permits third parties to register with Amazon Marketplace to sell products on Amazon.com to use its platform in tandem with Amazon. This arrangement gives sellers access to millions of buyers and buyers access to millions of sellers via Amazon's controlled platform.

As a retailer, Amazon competes not only with major online or mobile app retail rivals like Costco, Wayfair or Home Depot, but also with its own hosted third-party sellers, who are contractually authorized to sell their wares on the Amazon.com platform.

But selling on Amazon comes with certain restrictions. When a seller registers with Amazon Marketplace, it agrees to the terms of the Amazon Services Business Solutions Agreement (BSA) and the policies incorporated in that agreement, which establishes rules for setting prices on Amazon's platform.

FACTS & FIGURES

• Sales via Amazon account for almost half of all U.S. retail e-commerce.
• Amazon's nine largest competitors have only 1.1-6.6% share.
• Amazon sells approximately 12 million products at Amazon.com.
• 80% of Amazon’s third-party sellers also sell their products on other online retail websites that compete with the Amazon.com platform, most commonly on eBay, their own websites, or via Walmart.
• Almost half of Amazon’s third-party sellers, generate 81 to 100% of their revenues from sales on the Amazon.com platform.
• Amazon has engaged and continues to engage in horizontal price fixing with its two million third-party sellers with respect to items offered for sale on other sites. 

ABOUT AMAZON'S "FAIR PRICING" POLICY

Amazon's restrictions on sellers using its platform included restrictions on the price of products offered for sale on the seller's channels, or its affiliates' channels, or physical stores, meaning if a retailer listed an item for sale on Amazon's Marketplace for a certain price, they were barred from changing that price anywhere else, including on their own website, or in their own physical stores. This gives Amazon an unprecedented control over pricing beyond its own platform. We believe this violates antitrust laws and harms consumers by artificially setting prices.

Even though it is under investigation by the FTC, Amazon continues to enforce this policy under its “fair pricing” provision, which severely penalizes sellers who offer lower prices outside the Amazon.com platform. Amazon’s “fair pricing” policy states that “Amazon regularly monitors the prices of items on our marketplaces,” and that if it sees “pricing practices” on the Amazon.com platform “that harm[] customer trust, Amazon can remove the Buy Box [i.e., the coveted one-click-to-buy button] remove the offer, suspend the ship option" or suspend or terminate selling privileges.

One of the pricing practices Amazon identifies as “harmful” to customer trust is “[s]etting a price on a product or service that is significantly higher than recent prices offered on or off Amazon." Under the “fair pricing” provision, “[a]ny single product or multiple products packages must have a price that is equal to or lower than the price of the same item being sold by the seller on other sites or virtual marketplaces." This effectively gives Amazon control over a massive share of retail pricing, through a horizontal price fixing scheme in violation of federal antitrust laws, and also drives up pricing on its own website.

YOUR CONSUMER RIGHTS

The lawsuit seeks reimbursement for the illegal price increases pushed onto Amazon customers. Hagens Berman believes that those who unknowingly paid high prices for online purchases deserve compensation for Amazon's greed and wrongdoing. 

We believe millions of consumers overpaid for online purchases on Amazon.com because Amazon prevents its third-party sellers from competing on price outside its platform. Even when it costs sellers less, (when the seller sells directly to consumers on its own website or at a lower fee on eBay) sellers are contractually barred or severely penalized from passing on these savings to their customers.

TOP CONSUMER RIGHTS FIRM

Hagens Berman is one of the most successful consumer litigation law firms in the U.S. and has achieved more than $320 billion in settlements for consumers in lawsuits against food corporations, automakers, big banks and others. Hagens Berman has achieved many record-breaking victories in antitrust matters, and your claim will be handled by attorneys experienced in consumer law.

NO COST TO YOU

There is no cost or fee whatsoever involved in joining this case. In the event Hagens Berman or any other firm obtains a settlement that provides benefits to class members, the court will decide a reasonable fee to be awarded to the class's legal team. In no case will any class member ever be asked to pay any out-of-pocket sum.