Amazon faces billions of pounds of legal lawsuits while UK shoppers are inflated
Amazon is accused of artificially exaggerating the prices paid by tens of millions of British consumers, facing billions of pounds of legal challenges in the UK.
The Association of Consumer Support Organizations (ACSO) of nonprofits has applied to launch a collective legal action on behalf of 45 million customers who have purchased products from Amazon since 2019. It claims that the e-commerce giant prevents independent sellers from offering cheap prices on their websites, limiting competition and promoting costs for consumers.
If successful, the “option out” claim could automatically entitle millions of Britons to refund without having to join the action alone.
Matthew Maxwell-Scott, founder and executive director of ACSO, said: “Millions of people in the UK buy on Amazon every day. While the company guarantees it is a “customer-obsessed customer” first, we think there are strong reasons to argue that the higher prices in the UK consumers can ensure that this action can pay higher losses. It can provide consumers with losses.
The lawsuit echoes a long battle between Amazon and foreign regulators. In the U.S., the Federal Trade Commission filed a lawsuit in 2023, claiming that Amazon used its “monopoly to exaggerate prices” by penalizing sellers who offer discounts elsewhere. Although part of the claim has been dismissed, the case is under trial.
The move highlights the growing prevalence of American-style class action since the Consumer Rights Act reformed in 2015. Collective cases have become an increasing risk for multinational corporations, and researchers warned by the European Centre for International Political Economy in June warned that large-scale litigation could damage the UK economy’s £18 billion to prevent investment.
Amazon has faced scrutiny in the UK before. A 2013 investigation into its pricing practices led to voluntary changes to address regulatory concerns. But ACSO believes its business model continues to prevent “healthy price competition.”
Amazon rejects these claims. A spokesperson said: “There is no merit in this claim and we are confident that we can clearly show through legal procedures. Amazon features offer low-priced and fast delivery capabilities. In fact, according to independent analysis by Profitero, Amazon has maintained its position as the UK’s lowest-priced online retailer for the fifth consecutive year.
“We remain committed to supporting 100,000 independent businesses that sell their products in our UK stores, which generates billions of pounds of export sales every year.”
Given its potential scale, retailers and investors will be watching the case closely. Amazon’s UK operations serve more than 45 million customers and powers approximately 100,000 third-party sellers. The ruling against the company could open one of the largest consumer compensation awards in the UK ever.
This is also a delicate period for the company to be in the UK. Former Amazon UK boss Doug Gurr was appointed earlier this year to lead the Bureau of Competition and Markets, a supervisory body that has previously studied pricing practices.
