Amazon’s ‘Buy Box’ Designed To Fool Shoppers Into Paying More, Lawsuit Alleges
By Mikelle Leow, 13 Feb 2024
Photo 286756129 © Rokas Tenys | Dreamstime.com
Amazon finds itself at the center of a class-action lawsuit, accused of leading its customers down a pricier path via the ‘Buy Box’ feature, a prime piece of digital real estate that suggests a ‘Buy Now’ or ‘Add to Cart’ option for items it deems worthy.
However, the plaintiffs argue that this feature isn’t playing fair, claiming it’s skewed to favor items that fatten the marketplace’s pockets through higher fees from its merchants or those enrolled in the Fulfillment By Amazon (FBA) program, Ars Technica first reports.
The complaint argues that nearly 98% of Amazon’s sales are clinched through the Buy Box, with customers under the impression that these items represent the best value. Yet, the suit contends that this belief often leads to people shelling out more than they need to, bypassing cheaper alternatives available on the platform that can be fulfilled even more quickly. They assert that the e-commerce giant’s algorithm is designed to “routinely” push offers that are more profitable for the company, rather than focusing on the best deals for the consumer.
The legal challenge has been mounted by two California residents, Jeffrey Taylor and Robert Selway, who are standing up for all Amazon customers who have used the Buy Box to make purchases from 2016 onwards. They accuse the retail giant of deceiving its vast customer base into overpaying, seeking not only compensation for these alleged overcharges but also a court order to halt Amazon’s use of what they claim is a biased algorithm to promote sales via the Buy Box.
“Amazon customers reasonably believe that the Buy Box—which presents the only way for a customer to ‘Buy Now’ or ‘Add to Cart’ for a given item—features the lowest-price offer for that item. But that isn’t true,” the lawsuit notes.
It shines a spotlight on the growing scrutiny over Amazon’s marketplace operations, echoing concerns that have previously attracted the attention of regulatory bodies in both the US and Europe. Notably, Amazon was previously hit with a hefty US$1.3 billion fine by the Italian Competition Authority in 2021 for practices deemed unfair in relation to the Buy Box. Furthermore, in 2022, the European Commission demanded that Amazon ensure equal treatment for all sellers in its Buy Box selections, marking a significant pushback against the company's alleged preferential treatment.
Taylor and Selway’s lawyers tell the publication that the class-action battle is expected to cover “hundreds of millions” of consumers, since “virtually all” orders go through the Buy Box.
With the dispute seeking to force a change in how Amazon’s Buy Box operates, the outcome could potentially have far-reaching implications for both the website and its visitors alike.
[via Gizmodo and Ars Technica, cover photo 286756129 © Rokas Tenys | Dreamstime.com]