🔨 Judge Dismisses Class Action
A federal judge dismissed a class action against Amazon on July 19, 2024. The lawsuit accused Amazon of misleading Prime members about free Whole Foods delivery. The judge said the plaintiff did not prove which ads she relied on. Amazon showed the delivery fee on two webpages during checkout. The lawsuit was dismissed for now but can be amended to clarify claims.
📦 Details of the Case
The case was filed in 2022, alleging Amazon's marketing about Whole Foods deliveries for Prime members was "false, misleading and likely to deceive a reasonable consumer." Amazon started charging a $9.95 service fee for Whole Foods deliveries in 2021. The plaintiff’s lawyers estimate hundreds of thousands of affected Prime members. The judge said the plaintiff could amend the lawsuit to show consumers might believe free delivery was guaranteed for the full Prime membership period.
💡 Amazon's Response
Amazon argued that Prime benefits can change, and it has the discretion to add or remove perks like free delivery. Amazon denied violating Washington's consumer protection law, which bans deceptive advertising and unfair practices. The company said it clearly disclosed the service fee during the checkout process. Amazon bought Whole Foods in 2017 for $13.7 billion and has faced several legal challenges regarding its business practices.
⚖️ Ongoing Legal Battles
Amazon is dealing with other lawsuits from consumers, businesses, and government agencies. The FTC accused Amazon of using monopoly power to block competitors and charge high prices. Another lawsuit claims Amazon inflated eBook prices. Amazon denies wrongdoing in these cases. The current case is In re: Amazon Service Fee Litigation, U.S. District Court, Western District of Washington, No. 2:22-cv-00743-TL. Plaintiffs are represented by Manish Borde, Adam Berger, and Ronald Marron. Amazon's legal team includes Brian Buckley, Monica Chan, and Jedediah Wakefield.
Do you think Amazon's fee disclosures were clear enough?
