Amazon Class Action Lawsuit

Web retailer Amazon.com has been sued by the District of Columbia for imposing terms on third-party sellers that limit price competition and artificially raise the prices consumers have to pay for items sold by those third-party sellers, whether on or off Amazon.

Amazon controls more than 70% of all online commerce in the United States. That market is split between direct sales made by Amazon and sales made by other merchants through the "Amazon marketplace." As a practical matter, most online merchants need access to Amazon's marketplace to remain financially viable. To get access to that marketplace, third-party sellers must agree to Amazon’s terms. Those terms require that the merchants pay substantial fees to Amazon, sometimes upwards of 40% of the net revenue of each sale.

At the same time, the terms prohibit any third-party merchant from charging less anywhere else online than they charge on Amazon’s website. Because third-party sellers cannot sell for less even on their own websites, Amazon is able to charge more for its competing Amazon-branded items.

In imposing contracts on third-party sellers that raise prices for consumers, Amazon.com may have violated federal and state laws. 

About Our Attorneys

Robins Kaplan LLP law firm is among the nation’s premier trial law firms with more than 225 attorneys in seven major cities. Our attorneys have compassion for our clients and passion for justice. When huge forces are at play, major money is at stake, or rights are being trampled, we help clients win what matters most.