A U.S. District Judge in Seattle rejected Amazon’s request to dismiss a proposed class-action lawsuit. The suit accuses the company of price gouging during the COVID-19 pandemic.
The judge found it plausible that consumers lacked meaningful choice when purchasing from Amazon. This lack of choice stemmed from widespread product shortages and public health directives.
The lawsuit alleges Amazon profited from the crisis by inflating prices on its own inventory. Furthermore, the complaint claims Amazon failed to prevent third-party sellers from charging excessively high prices for staples. Examples cited include extreme price increases on face masks, toilet paper, and pain relief tablets.
The case will now proceed. This development creates legal and reputational headwinds for the e-commerce giant.