Amazon customers in the UK could each receive a portion of £900 million in compensation once a lawsuit is filed against the company.
It is alleged in the proposed lawsuit that the business violated the legislation on competition, which increased customer costs.
It is being led by consumer rights advocate Julie Hunter. She claims that items offered on Amazon.co.uk and the Amazon app concealed better-value offers.
The “buy box highlighted “‘s deals account for more than 80% of purchases on the website.
Ms. Hunter asserts that independent merchants are not included in the buy box even when they provide the same goods at a lower price or with better terms. This is in violation of EU and UK competition legislation.
Surveys show that two-thirds of UK consumers use Amazon at least once each month. Nine out of ten shoppers in the country have used Amazon.
Ms. Hunter claims that Amazon employs deceptive design strategies to influence consumer decision-making and steer users toward the options available in its buy box.
According to Ms. Hunter, most customers consider and choose this featured offer. Many of whom erroneously believe Amazon to be the most excellent deal because they trust the company.
An estimated £900 million in damages will be sought from Amazon in the lawsuit, launched in London’s Competition Appeal Tribunal.
According to David Greene of the London Solicitors Litigation Association, who spoke to BBC News, it’s difficult to predict whether a case will succeed.
Who qualifies for the compensation?
Members of the claimant class have made purchases on Amazon.co.uk or the Amazon mobile app in the UK since October 2016.
The planned case is an opt-out collective-action claim, which means that the class action is being initiated on behalf of the impacted consumers, and they will not be required to pay any costs or fees to participate.
Other Amazon research
There are now two official anti-trust investigations by the European Commission investigating Amazon.
Starting in November 2020, one examines the same alleged “self-preferencing” by Amazon as is alleged in the UK claim.
The commission’s initial conclusion was that the criteria and procedures for the buy box unfairly benefitted. Amazon’s retail division and marketplace vendors that used its logistics and shipping services.
Amazon has made specific promises to resolve these issues, which it is now assessing.
The Competition and Markets Authority (CMA) declared in July 2022 that it was looking into Amazon’s activities. Particularly the standards it used to choose which offers to feature.
Following the European Commission in announcing its probe was the CMA.
Jeff Bezos of Amazon issues a financial warning
Jeff Bezos, the creator of Amazon, has joined his voice to the chorus of those warning that the US economy will face difficulties in the future.
The billionaire claimed on social media that the state of the economy was a warning to “batten down the hatches.”
Read Also: Earnings at Amazon increases in Q2
Two consecutive quarters of declining growth in the US are a milestone that many other countries—but not the US—consider a recession.
Many experts anticipate an even more significant decline as the US central bank boosts interest rates to combat increasing prices.
The constant uproar recently compelled US President Joe Biden to speak out on the matter.
A group of economists announced the official beginning and end of recessions in the US. In addition to the GDP, they consider some other factors when coming to their conclusion.
Mr. Biden has attempted to argue that the economy’s downturn is a positive change from the GDP spurt that followed the pandemic lockdowns.
As midterm elections loom in November, household finances are still in good shape, and job creation is still strong.
The hope that the government can control the situation without causing a potentially severe downturn has dwindled. Inflation has stayed far higher than the 2% target, reaching 8.2% last month.
