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According to a complaint filed on Thursday in federal court in
Seattle, Amazon's algorithm for choosing what to display in its
"Buy Box" when shoppers search for products often obscures
lower-priced options with faster delivery times.
Citing the recent antitrust case against Amazon by the U.S.
Federal Trade Commission and 17 states, the complaint said
shoppers go with Amazon's choices nearly 98% of the time by
clicking its "Buy Now" or "Add to Cart" buttons, often falsely
believing Amazon had found the best prices.
Amazon allegedly created the algorithm to benefit third-party
sellers that participate in its Fulfillment By Amazon program
and pay "hefty fees" for inventory storage, packing and
shipping, returns and other services, the lawsuit said.
"While ostensibly identifying the selection that consumers would
make if they considered all the available offers, Amazon's Buy
Box algorithm deceptively favors Amazon's own profits over
consumer well-being," the complaint said.
Amazon declined to comment.
The complaint was filed by California residents Jeffrey Taylor
and Robert Selway.
It seeks damages for Amazon's alleged violations since 2016 of a
Washington state law against deceptive trade practices, which
resulted in a "great burden placed upon its customers,"
according to the plaintiffs' lawyer Steve Berman.
The case differs from other private litigation over the "Buy
Box" by focusing on harm to consumers from deceptive practices,
instead of antitrust violations or harm to sellers that do not
join Amazon's fulfillment program.
The case is Taylor et al v Amazon.com Inc, U.S. District Court,
Western District of Washington, No. 24-00169.
(Reporting by Jonathan Stempel in New York; editing by Jonathan
Oatis)
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