A US federal court has refused Amazon’s motion to dismiss a proposed class-action lawsuit accusing the retailer of charging excessive prices for essential goods during the Covid-19 pandemic.
US District Judge Robert Lasnik ruled that claims brought under Washington consumer protection laws were sufficiently clear when applied to pricing practices and could encompass the alleged conduct.
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Seattle-based Hagens Berman managing partner Steve Berman said: “This is a significant victory for consumers who allege that Amazon made billions in excess profits during the pandemic.”
In his decision, Lasnik said it was reasonable to infer that Amazon took advantage of pandemic conditions when public health restrictions and supply disruptions limited consumer choice and imposed unfair prices on certain goods.
The complaint alleges that prices on a range of products sold through Amazon’s platform surged, including a 1,044% increase for toilet paper.
It also cites hikes of 1,523% for cold remedies and up to 1,800% for some face masks.
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By GlobalDataLasnik noted that internal Amazon documents suggested the company was aware of what constituted price gouging and had told state attorneys general that it was seeking to curb such behaviour.
In an order dated 5 January, he wrote that plaintiffs had plausibly alleged that “Amazon exploited vulnerable consumers who turned to Amazon as a lifeline for consumer goods and food items during a public health crisis, accumulating huge and unjust profits”.
The court also issued separate rulings blocking several subpoenas served by Amazon, finding that they appeared intended to harass or embarrass the class representatives.
Lasnik said that “the reasonable inference is that Amazon is trying to make this litigation as difficult, burdensome, and potentially embarrassing as possible for the named plaintiffs’ closest associates”.
The lawsuit was first filed on 21 April 2020 and seeks compensation for consumers who paid what are described as “unfair” prices for food and other consumer goods purchased on Amazon between 31 January 2020 and 20 October 2022, around the period when Washington and other states lifted Covid-related states of emergency.
The proposed class includes individuals who bought consumer or food items categorised as emergency goods during the period and whose prices were allegedly set at unfair levels.
The court said the exact determination of which prices were unfair would be addressed after the completion of discovery and expert assessment.
Retail Insight Network has contacted Amazon for a comment.
