Amazon could be forced to fork out £900million in compensation after being accused of unlawfully favouring its own offers.
The collective action lawsuit alleges that Amazon breached competition law and caused tens of millions of Brits to pay higher prices for products by obscuring better-value deals.
The lawsuit, which is headed by consumer rights advocate Julie Hunter, is due to be filed to the Competition Appeal Tribunal this month and includes anyone who made a purchase online or on the Amazon app since October 2016, according to City AM.
Ms Hunter claims Amazon’s “Buy Box” prevents consumers from navigating the website for cheaper offers.
She alleges this “manipulation” breaches Amazon’s obligation as the dominant marketplace not to distort competition.
She said Amazon “uses tricks of design to manipulate consumer choice and direct customers towards the featured offer in its Buy Box”.
It is estimated that around 85% of consumers use the “Buy Box” when purchasing products from the firm.
Ms Hunter said: “Online shoppers have a right to be treated fairly and to be able to make informed decisions.
"This lack of transparency and manipulation of choice is an abuse of consumers’ trust, as well as a raid on their wallets.
“Amazon occupies an incredibly powerful position in the market, making it impossible for consumers to take individual action.
Amazon shouldn’t be allowed to set the rules in its favour and treat consumers unfairly”.
FTSE 100
The UK's top share index, the FTSE 100, was 11-points at 6,913 shortly after opening this morning, following yesterday's 11-point drop.
Brent crude futures were 0.54% higher at $92.91 a barrel.
Companies reporting today
The following companies are reporting this morning:
- AJ Bell - Full year trading statement
- Bunzl - Q3 trading statement
- Dunelm - Q1 trading statement
- Jupiter Fund Management - Q3 trading statement
- National Express - Trading statement
- Relx - Q3 trading statement
- Schroders - Assets under management statement
- St James' Place - New business announcement
- Travis Perkins - Q3 trading statement