Amazon faces a lawsuit in billions

Amazon faces a $1 billion lawsuit brought on behalf of millions of UK customers over allegations the US retail giant illegally promotes its own products, a statement said Thursday.

The £900-million class action against Amazon will be filed by consumer rights advocate Julie Hunter by the end of October at London's Competition Appeal Tribunal, according to the statement from Hunter and law firm Hausfeld.
The lawsuit will argue Amazon abuses its dominant position and harms consumers by directing them to their "featured offer" in a so-called Buy Box, with products selected via a "secret algorithm".

"Many consumers believe that Amazon offers good choice and value, but instead it uses tricks of design to manipulate consumer choice and direct customers towards the featured offer in its Buy Box," said lead claimant Hunter in the statement.
"Far from being a recommendation based on price or quality, the Buy Box favours products sold by Amazon itself, or by retailers who pay Amazon for handling their logistics.

"Other sellers, however good their offers might be, are effectively shut out -- relegated down-page, or hidden several clicks away in an obscure corner of Amazon's website."

Hunter added that the US giant "shouldn't be allowed to set the rules in its favour and treat consumers unfairly".

Amazon issued a stern statement in response to news of the upcoming class action.
"This claim is without merit and we're confident that will become clear through the legal process," a spokesperson said.

"Amazon has always focused on supporting the 85,000 businesses that sell their products on our UK store, and more than half of all physical product sales on our UK store are from independent selling partners.

"We always work to feature offers that provide customers with low prices and fast delivery."