Amazon (NASDAQ:AMZN)
The “Buy Box” feature of Amazon (NASDAQ:AMZN) is the primary target of a potential class action lawsuit that might be worth one billion dollars and is being sponsored by a legal company in the United Kingdom called Hausfeld & Co. As a result, Amazon stock declined as soon as the news hit the market.
It is anticipated that the case will be submitted to the Competition Appeal Tribunal in London by the end of October. At this time, Hausfeld is looking for claimants who reside in the United Kingdom and have made purchases on Amazon stock anytime after October 2016.
Hausfeld will assert that Amazon stock utilizes an algorithm to provide preferential treatment to its own items and third-party merchants that use Amazon’s storage and delivery services. It plans to center its complaint on Amazon’s “Buy Box,” a feature that makes products more noticeable to customers.
The complaint will contend that many customers incorrectly think the purchase box provides the most significant discounts since it only showcases a product from a single supplier. According to Hausfeld, however, Amazon uses an algorithm to highlight either its own goods or things that are being offered by merchants using Amazon’s fulfillment and shipping services.
In the pending litigation, it will be alleged that Amazon violated competition law and used its dominating position in the e-commerce industry to conceal better consumer offers. Amazon stock has not yet provided a response to the possible legal action.
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Amazon stock falls as the company prepares for a class action lawsuit focusing on Buy Box that might total $1 billion.
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Author Shariq Khan 
