Amazon faces class action as US court allows COVID price-gouging case to proceed
A federal judge said consumers may have had no real alternative but to buy from Amazon during pandemic shortages.
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A US federal court has refused to dismiss a proposed class-action lawsuit accusing Amazon of charging excessive prices for essential goods during the COVID-19 pandemic, allowing the case to move forward against the e-commerce giant.
US District Judge Robert Lasnik ruled on Monday that the consumer claims against Amazon were plausible, rejecting the company’s argument that Washington state’s consumer protection laws were too vague to apply to alleged price gouging.
In his ruling, Lasnik said it could reasonably be inferred that pandemic-era shortages, government health restrictions and a sharp shift toward online shopping left consumers with limited alternatives. As a result, shoppers may have been compelled to purchase basic necessities from Amazon despite what they claim were unfairly inflated prices.
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The lawsuit alleges that Amazon failed to adequately police third-party sellers on its marketplace, allowing them to charge unlawfully high prices for staple items such as food, household supplies and medical products. Plaintiffs also accuse Amazon of increasing prices on goods sold directly from its own inventory, claiming the company sought to profit from heightened consumer dependence during the health crisis.
Court filings cite dramatic price increases on several everyday products, including pain relievers, toilet paper, baking soda and face masks, with some items allegedly selling for several times their pre-pandemic prices.
Amazon and its legal representatives did not immediately respond to requests for comment following the ruling.
The case seeks financial compensation for consumers who purchased essential goods on Amazon between January 31, 2020 and October 20, 2022, a period covering most state-declared COVID-19 emergencies in Washington and elsewhere.
Steve Berman, a lawyer representing the plaintiffs, described the court’s decision as a significant step for consumer rights. He said internal Amazon documents suggest the company was aware of what constituted price gouging and had assured state authorities that it was working to prevent such practices.
The ruling does not determine Amazon’s liability but clears a major procedural hurdle, allowing the lawsuit to proceed toward further litigation and potential trial.
