By Samantha Jones-
Amazon is facing a $1bn (£889m) lawsuit in the UK over claims it abused its dominant position by favouring its own products.
The case, brought by consumer rights advocate Julie Hunter, and her lawyers said it centres on “a secretive and self-favouring algorithm” used by the tech giant to promote its own products through the “buy box” feature on its website.
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The £900m class action claim against Amazon accuses the company of pushing customers towards “offers” that benefit the online retailer, but are not good deals for users.Amazon is yet to fully defend the allegation.
The complaint, which is to be filed at the Competition Appeal Tribunal, focuses on the company’s “Buy Box” feature, which artificially promotes certain items above the rest in response to user searches.
Julie Hunter, a consumer advocate and the class representative, said: “Many consumers believe that Amazon offers good choice and value, but instead it uses tricks of design to manipulate consumer choice and direct customers towards the featured offer in its Buy Box.
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The claim is not great for business, not especially in light of some of the philanthropy shown by its CEO Jeff Bezos’s , who has reportedly given away some $2bn of his net worth clocks in at around $164.8 billion, of which he’s reportedly given away just $2.1 billion, or a measly 1%.
“Far from being a recommendation based on price or quality, the Buy Box favours products sold by Amazon itself, or by retailers who pay Amazon for handling their logistics. Other sellers, however good their offers might be, are effectively shut out – relegated down-page, or hidden several clicks away in an obscure corner of Amazon’s website.”
Items selected for Amazon’s “buy box” are more visible to shoppers and, therefore, have a head-start in achieving sales, the lawsuit claims.
The proposed class action is being brought on behalf of British consumers who bought items on Amazon since October 2016.
It is on an “opt-out” basis, meaning any potential claimants will be included in the claim unless they choose to opt out.
Ms Hunter said in a statement: “Far from being a recommendation based on price or quality, the buy box favours products sold by Amazon itself, or by retailers who pay Amazon for handling their logistics.
“Other sellers, however good their offers might be, are effectively shut out.”
The lawsuit is expected to be filed at London’s Competition Appeal Tribunal by the end of October and will need to be certified there before proceeding.
“We always work to feature offers that provide customers with low prices and fast delivery.”
Amazon has faced a number of other competition investigations in recent months, including in the UK, Europe, and Australia.
In July, the UK Competition and Markets Authority, said it would investigate Amazon over suspected anti-competitive practices, including how it selects listings for its Buy Box.
That same month, Amazon promised to treat all seller equally when ranking offers for the buy box – it was among several concessions made to the EU.
A spokesman for Amazon said: “This claim is without merit and we’re confident that will become clear through the legal process. Amazon has always focused on supporting the 85,000 businesses that sell their products on our UK store, and more than half of all physical product sales on our UK store are from independent selling partners.
“We always work to feature offers that provide customers with low prices and fast delivery.”
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