Amazon facing class-action lawsuit for allegedly inflating Fire TV prices
Amazon is currently facing a class-action lawsuit in the US, over accusations of deceptive pricing practices. The legal action, initiated in the US District Court for the Western District of Washington, alleges that Amazon intentionally displayed inflated list prices for its Fire TVs. This tactic was purportedly used to make discounts appear more substantial than they were, leading customers to believe they were getting a better deal.
Suit claims Amazon's pricing strategy was a 'persistent scheme'
The lawsuit further alleges that Amazon's pricing strategy was not an isolated incident, but a "persistent and uniform scheme." The company is accused of creating "fake list prices" for its Fire TVs, thereby making the advertised discounts misleading. The suit also claims that Amazon omitted crucial information about the duration of the sale, and when the list price was actually applicable.
Pricing practices allegedly violated Washington's Consumer Protection Act
The suit contends that Amazon's pricing practices violated Washington's Consumer Protection Act, a law that prohibits "unfair methods of competition and deceptive acts or practices in the conduct of any trade or commerce." The plaintiff, David Ramirez, is seeking both compensatory and punitive damages. He also wants an injunction to prevent Amazon from continuing these alleged practices.
Previous settlement in a similar case
The lawsuit cites a similar case from 2021 in California, where Amazon was prohibited from using fake or misleading list prices in its advertising. As part of that settlement, the company agreed to pay around $2 million in penalties and restitution. When approached by Seattle-based news outlet KIRO 7 for comment on the current lawsuit, an Amazon spokesperson declined to comment.
