Amazon braces for $1B class action lawsuit focused on Buy Box
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Amazon (NASDAQ:AMZN) is set to face a possible $1B class action lawsuit being led by UK law firm Hausfeld & Co, primarily focused on its âBuy Boxâ feature.
The lawsuit is expected to be filed at London's Competition Appeal Tribunal by end-October. Hausfeld is currently seeking claimants who made purchases on Amazon since October 2016 and live in the UK.
Hausfeld will allege that Amazon uses an algorithm to favor its own products and third-party sellers who use its storage and delivery services. Its lawsuit will focus on Amazonâs âBuy Boxâ, in which items are more visible to shoppers.
The box features a product from a single seller, and the lawsuit will allege many users wrongly assume the buy box offers the best deals. However, Amazon uses an algorithm to feature its own products or items sold by merchants using its fulfillment and delivery services, according to Hausfeld.
The lawsuit will claim Amazon breached competition law and misused its dominant position in e-commerce to obscure better deals for customers. Amazon has not yet responded to the potential lawsuit.
Amazon shares were up +1.59% as of 12:35PM ET.