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A lawsuit was filed in California last week, alleging that Amazon deceives its customers into paying higher prices by using the “Buy Box” feature. The complaint states that Amazon manipulates algorithms and incentives to direct shoppers towards more expensive products.
There is a white box called the Buy Box on Amazon’s product pages. It allows customers to either add the product to their cart or buy it immediately.However, a lawsuit alleges that Amazon uses a process to select a seller to feature in the Buy Box, which maximises its profits. This process is opaque; the selected seller often offers higher prices for the same product than other sellers found deeper in the marketplace.
According to the lawsuit, Amazon rewards companies that use its Fulfilment by Amazon (FBA) shipping and delivery services. However, these companies often pass on the additional costs to their customers. In addition, merchants have to pay fees to Amazon for every sale they make, which further raises the prices. As a result, the seller who pays Amazon the most usually wins the Buy Box, regardless of whether they offer the best deals to customers.
The lawsuit accuses Amazon of leading customers towards inferior offers by making the Buy Box the most convenient option for ‘one-click’ purchasing. The suit further alleges that more competitive pricing is listed on external seller listings buried deep down the page. However, almost 100% of shoppers use only the Buy Box. They reasonably assume that the Buy Box showcases reputable sellers vetted by Amazon and offer fair or market-leading pricing.
Two California plaintiffs filed on behalf of all Amazon customers through the site since 2016 in the US – potentially hundreds of millions. They allege systematic false advertising and unfair business practices around the Buy Box. The suit seeks monetary relief for all damages to this massive class.
There is a white box called the Buy Box on Amazon’s product pages. It allows customers to either add the product to their cart or buy it immediately.However, a lawsuit alleges that Amazon uses a process to select a seller to feature in the Buy Box, which maximises its profits. This process is opaque; the selected seller often offers higher prices for the same product than other sellers found deeper in the marketplace.
According to the lawsuit, Amazon rewards companies that use its Fulfilment by Amazon (FBA) shipping and delivery services. However, these companies often pass on the additional costs to their customers. In addition, merchants have to pay fees to Amazon for every sale they make, which further raises the prices. As a result, the seller who pays Amazon the most usually wins the Buy Box, regardless of whether they offer the best deals to customers.
The lawsuit accuses Amazon of leading customers towards inferior offers by making the Buy Box the most convenient option for ‘one-click’ purchasing. The suit further alleges that more competitive pricing is listed on external seller listings buried deep down the page. However, almost 100% of shoppers use only the Buy Box. They reasonably assume that the Buy Box showcases reputable sellers vetted by Amazon and offer fair or market-leading pricing.
Two California plaintiffs filed on behalf of all Amazon customers through the site since 2016 in the US – potentially hundreds of millions. They allege systematic false advertising and unfair business practices around the Buy Box. The suit seeks monetary relief for all damages to this massive class.
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