Saturday, December 14, 2024

Amazon accused of misrepresenting ‘gross sales’ figures for personal brands in lawsuit?

Amazon faces a class-action lawsuit alleging deceptive pricing practices. The Go Well With lawsuit claims Amazon misled consumers by displaying exaggerated price lists for Hearth TVs, thereby making discounts seem more significant than they actually were.

The lawsuit was filed in the US District Court for the Western District of Washington, alleging that Amazon consistently employed a “persistent and uniform scheme.” The complaint claims the company created “phantom cost entries” for its own Fire TVs, rendering apparent “discounts” deceptive.

The complaint alleges that the corporation deceived prospective buyers by withholding “critical information” about the true nature of the sale, including the original list price when the discount was actually in effect. According to the suit, this strategy led Amazon customers to spend more money than they otherwise would have, had it not been for the alleged limited-time discounts. The complaint also claims that many Fire TV units sold for significantly less than their listed prices, often remaining under market value for a year or longer.

The complaint asserts that Amazon has violated section 16898 of the California Business and Professions Code, which prohibits unfair competitive tactics and misleading commercial practices. The plaintiff, David Ramirez, is seeking monetary relief, including compensatory and punitive damages, as well as a court order to compel Amazon to cease its allegedly unlawful conduct. The plaintiff seeks compensatory damages in an amount to be determined by the court or jury, as well as prejudgment interest on any awards made.

The lawsuit cites a precedent set in 2021, wherein Amazon was prohibited from exploiting false or misleading pricing labels in its advertising. The corporation also agreed to pay penalties and provide restitution as a condition of the settlement. At this stage, it’s still too early to tell.

An Amazon spokesperson declined to comment on the matter. We have contacted the corporate office with our concerns and will provide an update once we receive a reply.

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