Amazon must face US nationwide class action over third-party sales

Amazon.com AMZN must face a class action on behalf of hundreds of millions of U.S. consumers over claims that the online retail giant overcharged for products sold by third-party sellers, a federal judge in Seattle has ruled.

U.S. District Judge John Chun in an order unsealed on Friday certified a nationwide class involving 288 million customers and billions of transactions, marking one of the largest-ever in the United States.

The class includes buyers in the United States who purchased five or more new goods from third-party sellers on Amazon since May 26, 2017.

The consumers’ 2021 lawsuit said Amazon violated antitrust law by restricting third-party sellers from offering their products for lower prices elsewhere on rival platforms while they are also for sale on Amazon.

Amazon’s policies have allowed the company to impose inflated fees on sellers, causing shoppers to pay higher prices for purchases, the lawsuit said.

Amazon has denied any wrongdoing. It has already appealed Chun’s class certification order, which was first issued under seal on Aug. 6.

Amazon and attorneys for the consumers did not immediately respond to requests for comment.

Amazon argued that the class was too large to be manageable and that the plaintiffs failed to show its alleged conduct had a widespread effect. Amazon also said that since 2019 it has not used a pricing program that the plaintiffs challenged.

Chun found there was no evidence at this stage that the size of the class was overbroad. Other federal courts had certified class actions with millions or hundreds of millions of class members, the judge said.

The case is Elizabeth De Coster et al v. Amazon.com Inc, U.S. District Court, Western District of Washington, No. 2:21-cv-00693-JHC.

For plaintiffs: Steve Berman and Barbara Mahoney of Hagens Berman Sobol Shapiro; Zina Bash of Keller Postman; and Steig Olson of Quinn Emanuel Urquhart & Sullivan

For defendant: Karen Dunn, William Isaacson and Amy Mauser of Dunn Isaacson Rhee, and John Goldmark of Davis Wright Tremaine

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