A U.S. District Court judge in Seattle ruled Dec. 5 that Amazon must face a proposed class-action lawsuit accusing the eCommerce giant of engaging in price gouging during the pandemic, Reuters reported.

The ruling comes after Amazon sought to have the case dismissed, arguing that Washington state consumer protection law did not clearly apply to the pricing conduct alleged by plaintiffs. Judge Robert Lasnik of the U.S. District Court found that argument unpersuasive, allowing the case to proceed. 

Allegations in the Lawsuit

The class action — Greenberg et al. v. Amazon.com Inc. — alleges that Amazon allowed third-party sellers on its platform to charge “flagrantly unlawful” prices on essential items during the early stages of the pandemic. Plaintiffs also claim Amazon inflated prices on products it sold directly, taking advantage of widespread shortages, public health directives and a shift to online purchasing that left many consumers with “no meaningful choice but to purchase from Amazon despite the allegedly unfair prices it was charging.” 

According to the complaint, many household essentials saw dramatic price increases during the period between January 31, 2020, and October 20, 2022 — the timeframe covering various state-declared emergencies. Examples cited in court filings reportedly include:

• Aleve pain relief tablets up 233%
• Quilted Northern toilet paper up 1,044%
• Arm & Hammer baking soda up 1,523%
• Some face masks up 1,800% 

Plaintiffs argue these increases were not the result of typical market forces but were unjustified profiteering at consumers’ expense, Reuters reported. They say Amazon failed to prevent unacceptable pricing practices by marketplace sellers and itself took part in the conduct by raising prices on its own inventory. 

Judge’s Ruling and Legal Basis

Judge Lasnik’s ruling specifically found that the plaintiffs had plausibly alleged violations of Washington state’s Consumer Protection Act. Amazon had contended that the law was too vague as applied to pricing conduct in this context, and that it lacked clear prohibitions against pandemic-related price increases. The court disagreed and concluded the complaint had sufficiently alleged that consumers were harmed and that Amazon’s platform conduct could fall within the scope of the statute. 

The decision means plaintiffs can push forward with discovery and further litigation. They are seeking damages for consumers who paid allegedly inflated prices during the pandemic emergency period. 

Amazon’s Response (or Lack Therof) and Next Steps

Amazon and its lawyers did not immediately respond to Reuters’ requests for comment following the ruling. Reuters reported that plaintiff attorney Steve Berman described the order as “an important win for consumers,” noting internal company documents reportedly show Amazon knew what constituted price gouging and had assured state attorneys general it was trying to curb it. 

The case now moves forward, with further legal proceedings expected as both sides prepare for discovery and additional motions.