Amazon must face historic price gouging class-action lawsuit, US judge rules

Amazon must face a proposed class-action lawsuit alleging price gouging during the COVID‑19 pandemic after a US district judge in Seattle rejected the company’s bid to dismiss the case.

The complaint, brought by consumers in Washington state, claims the retailer failed to stop third‑party sellers from charging “flagrantly unlawful” prices for essentials and also raised prices on its own inventory to “profiteer off consumers in desperate need.”

In a ruling reported by Reuters, US district judge Robert Lasnik called Amazon’s legal defence “unpersuasive” and said it was reasonable to infer that shortages, public health directives and a shift to online shopping left buyers “no meaningful choice but to purchase from Amazon despite the allegedly unfair prices it was charging.” The judge rejected arguments that state consumer protection laws were too vague to cover pricing during the emergency period.

The complaint lists sharp price increases across everyday goods, including 233 per cent on Aleve pain relief tablets, 1,044 per cent on Quilted Northern toilet paper, 1,523 per cent on Arm & Hammer baking soda and 1,800 per cent on some face masks. The plaintiffs seek damages for people who paid “unfair” prices between 31 January 2020 and 20 October 2022, a period aligned with the end of COVID‑related states of emergency in Washington and other states.

Lawyer Steve Berman, representing the plaintiffs, described the decision as “an important win for consumers,” adding that internal Amazon documents showed the company understood price gouging and told state attorneys general it was working to prevent it.

The case addresses both marketplace activity and Amazon’s own sales, asserting the company had the ability and responsibility to curb extreme pricing on its platform during a public health crisis. By allowing the lawsuit to proceed, the court will evaluate whether alleged conduct violated Washington’s consumer protection statutes and whether the asserted pricing practices caused harm to shoppers who relied on Amazon for essential goods.

If successful, the action could result in monetary relief for affected consumers and potentially influence how large online marketplaces monitor and enforce pricing standards during future emergencies. The next stages are expected to focus on evidentiary discovery, class certification and arguments on liability under state law.