A federal judge has thrown out a lawsuit alleging that Amazon dupes consumers by featuring the items it sells, or that third parties that use its shipping services sell, in “Buy Box” -- a widget that allows shoppers to immediately purchase items.
In a ruling issued Wednesday, U.S. District Court Judge Marsha Pechman in Seattle said the complaint, even if proven true, wouldn't show that the Buy Box is deceptive or unfair.
“Plaintiffs cannot show how Amazon’s marketing techniques, which are similar to those employed by retailers throughout the country, can deceive a substantial portion of consumers,” Pechman wrote.
“While Plaintiffs invoke modern fears of algorithmic control and deceptive design, the court finds that a reasonable consumer is no more likely to be misled by Amazon’s practices than they would be on a routine trip to the grocery store,” she added.
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The ruling stems from a class-action complaint brought last year by Jeffrey Taylor and Robert Selway. They alleged that Amazon's algorithms for the Buy Box are biased in favor of products Amazon sells as a retailer, and products sold by third parties that use Amazon's shipping services -- even when other sellers on Amazon offer the same products at lower prices.
Their complaint claimed that Amazon's customers “reasonably believe” that the Buy Box features the lowest price for items.
Pechman dismissed the original complaint without prejudice last year, ruling that Taylor and Selway failed to allege the kinds of details that would show they were overcharged by Amazon.
The duo then amended their complaint to include more specifics. For instance, the amended complaint alleges that in October 2020, Taylor paid a total of $24.87 to purchase the CD “Band Magic: The Sound of the Fabulous Forties” via the Buy Box, when a third-party vendor on the site offered the same CD for $13.85.
“Amazon Retail offer won the Buy Box -- even though, including shipping, it was almost 80 percent more expensive than the third-party offer,” the amended complaint alleges.
The plaintiffs also alleged that Amazon more prominently displays the Buy Box offer than other offers, even when those other offers are cheaper.
Amazon countered that it considers several factors -- not just price -- when deciding which items to place in the Buy Box.
“Plaintiffs do not compare apples to apples,” Amazon argued in a motion to dismiss the case.
“Plaintiffs do not allege that the other key attributes of this third-party offer, such as seller performance and cancellation rate, were equivalent to the featured offer,” the company added, referring to the Buy Box offer.
Amazon also said the amended complaint lacked allegations regarding “particular misrepresentation or deception” that caused people to purchase the Buy Box item instead of the other offers on the site.
Pechman sided with Amazon, ruling that the allegations, even if proven true, wouldn't show that Amazon bilked consumers.
“It is true that Amazon Marketplace prominently features the Buy Box offer, and those offers that fail to 'win' the Buy Box are relegated to the 'Other Sellers' section of the item detail page. But this is not deception; it is marketing,” she wrote.
She added: “The way in which Amazon highlights the Buy Box offer is no different than a retailer using the layout of its shelves or in-store displays to promote one particular product while minimizing others. Just like in a brick-and-mortar store, Amazon customers may peruse the digital 'shelves' and compare deals and items to find those which best fit their needs.”
The ruling was with prejudice, meaning that the plaintiffs can't beef up their allegations and bring them again.