Prime Day is one of those times of the year when the internet crashes. Price drops, discounts, and sales are opportunities many don’t want to miss. Some renovate their kitchens, others buy Christmas gifts, or take advantage of the opportunity to buy that expensive appliance they can’t afford… Amazon is aware of this craze, and according to a class-action lawsuit, the giant is inflating prices and deceiving consumers with fake Prime Day discounts.
Amazon agreed to pay $2.5 billion to settle an allegation
This isn’t the first time Amazon has faced these kinds of allegations, both official and unofficial. “Amazon promises consumers that during the brief Prime Day window they can get ‘Amazon’s best discounts of the year on millions of products from top brands,'” the lawsuit states. In fact, a few weeks ago, Amazon agreed to pay $2.5 billion to settle allegations from a US regulator accusing it of deceptive practices in signing consumers up for Amazon Prime.
Now Amazon is facing the latest lawsuit filed by two Amazon Prime members
Regarding the settled lawsuit, the Federal Trade Commission (FTC) complaint, filed in federal court in Seattle, alleges that Amazon knowingly misled consumers into signing up for Prime, which charges $139 a year, during the checkout process. As the FTC states, “We are committed to defending consumers’ rights when companies attempt to defraud citizens.” They have done so, and now Amazon is facing the latest lawsuit filed by two Amazon Prime members, Cathy Armstrong and Oluwa Fosudo. In it, the plaintiffs allege that Amazon Prime Day is plagued by fake sales and deceptive “percentage off” claims such as “Prime Day Deal: 40% off” or “Prime Day Deal: 44% off.”
Fake prices: consumers are now more aware of this fact, both in physical and online stores
This is a common practice in commerce, but one that is increasingly penalized. Many stores change prices to make consumers believe that certain products were previously much higher, making the discount worthwhile. The truth is, in some cases, they charge the price the product was actually worth, or just a couple of dollars off the original price. With this as a warning, consumers are now more aware of this fact, both in physical and online stores, as evidenced in this lawsuit.
It’s not that there isn’t a real discount, but that the discount isn’t as large as claimed
To give a practical example of the above, the lawsuit claims that a list price of $179.95 was advertised as part of a Prime Day sale with a purported 44% discount, even though that price hadn’t been Amazon’s list price for at least 90 days prior to the promotion. In other words, a deception regarding the discount and the actual price of the items. In contrast, the list price on Amazon has always been much lower than $179.95, ranging between $130 and $160, according to the lawsuit. In many cases, it’s not that there isn’t a real discount, but that the discount isn’t as large as claimed.
The plaintiffs are filing a lawsuit on behalf of themselves and other consumers
The plaintiffs allege violations of Washington’s consumer protection laws and request certification of the class action, damages, attorneys’ fees, costs, and a jury trial. The plaintiffs are filing a lawsuit on behalf of themselves and all other consumers allegedly deceived by Amazon’s fake Prime Day deals.
Meanwhile, in a recent statement regarding the aforementioned settled lawsuit, Amazon stated that the company and its executives have always respected the law, and that this settlement allows them to move forward and focus on innovation for their customers. The settlement represents one of the largest financial recoveries from the FTC in a consumer protection case. Proof that a fair fight can be won.
