A U.S. judge has ruled that Amazon must face a proposed class-action lawsuit accusing the retailer of price gouging during the COVID-19 pandemic, rejecting the company’s attempt to have the case dismissed.
U.S. District Judge Robert Lasnik said Washington state consumer protection laws were not unconstitutionally vague and could apply to the alleged conduct. He found it plausible that pandemic-related shortages and lockdowns left consumers with “no meaningful choice” but to buy from Amazon despite allegedly unfair prices.
Plaintiffs claim Amazon failed to stop third-party sellers from charging excessive prices for essential goods and also raised prices on its own products to profit from consumer desperation. The lawsuit cites price increases of more than 200% on painkillers, over 1,000% on toilet paper and baking soda, and up to 1,800% on some face masks.
Amazon did not immediately respond to requests for comment. Lawyers for consumers said internal documents show Amazon understood what price gouging was and told state authorities it was trying to prevent it.
The case seeks damages for consumers who paid allegedly unfair prices on Amazon between January 2020 and October 2022, covering most of the COVID-related emergency period.
