Amazon hit with two lawsuits over the Buy Box and the Prime Video ad fees،
Running a giant intergalactic corporation can be fun at times, but it also means you'll spend a lot of time in courtrooms. Well, not you personally, but your lawyers.
Amazon, for example, has been hit with two other lawsuits these days – one over its Buy Box feature, the other – over Prime Video advertising fees.
Reuters reports that Amazon is being sued in a proposed class-action lawsuit in the United States, accusing the giant of violating a consumer protection law by “steering hundreds of millions of shoppers toward more expensive items in order to gain additional costs.”
According to the complaint filed in federal court in Seattle, Amazon's algorithm for choosing what to display in its “Buy Box” often obscures cheaper options with faster delivery times. The complaint also states that shoppers opt for Amazon's choices nearly 98% of the time by clicking the “Buy Now” or “Add to Cart” buttons, often “mistakenly believing that Amazon has found the best prices.” , but, instead, the algorithm is “privileging Amazon’s own profits over consumer well-being.”
Amazon allegedly created the algorithm to benefit third-party sellers who participate in its Fulfillment By Amazon program and pay “high fees” for inventory storage, packaging and shipping, returns and other services, according to the trial.
Amazon declined to comment.
The other lawsuit involves Amazon's Prime Video ad fees — an Amazon Prime subscriber filed a class-action lawsuit (via Fox Business). The plaintiff, a California resident, accused Amazon of engaging in deceptive advertising practices and violating consumer protection laws. This legal action stems from what is being called an “unfair” change to Prime Video’s advertising policy.
This lawsuit was filed approximately ten days after Amazon's decision to begin integrating limited advertisements into the viewing experience for U.S. subscribers. Additionally, those who wish to maintain an ad-free service now have to pay additional monthly fees. To avoid ads, subscribers must pay an additional $2.99 each month.
