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- cross-posted to:
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Arizona’s Attorney General, Kris Mayes, filed two lawsuits against Amazon on Wednesday for allegedly engaging in deceptive business practices and maintaining monopoly status. The first lawsuit accuses the company of using dark patterns to keep users from canceling their Amazon Prime subscriptions, violating Arizona’s Consumer Fraud Act. This is similar to a complaint filed by the Federal Trade Commission (FTC) against Amazon in June.
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The second lawsuit alleges that Amazon unfairly maintains its monopoly status through agreements with third-party sellers that restrict them from offering lower prices off of the platform than they do on Amazon, violating Arizona’s Uniform State Antitrust Act. This practice has also been targeted by other state attorneys general in cases filed against Amazon.
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Additionally, the lawsuit accuses Amazon’s Buy Box algorithm of being biased towards first-party retail offers or sellers who participate in Fulfillment By Amazon, leading consumers to overpay for items that are available at lower prices from other sellers on Amazon. This aspect is also reflected in the FTC’s recent antitrust lawsuit against Amazon, which has been joined by more than a dozen state attorneys general.
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Arizona seeks to stop Amazon from engaging in these allegedly deceptive and anticompetitive practices and award civil penalties and disgorgement of ill-gotten gains.
The result will be Amazon gets a baby fine and shrugs it off as the cost of doing business.
Without fines being proportional to the business annual income nothing will be accomplished.