Amazon (AMZN) is facing a class-action lawsuit for allegedly falsely advertising a popular product line with “fake” List Prices and discounts to “trick” customers into making a purchase.
In the lawsuit, which was filed on Sept. 12, Amazon customer David Ramirez is accusing the company of misleading customers about the prices of its Fire TVs by tricking them into thinking that they are getting a “limited time deal.”
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He alleges that Amazon achieves this by putting the TVs on sale but marking up the former prices of the products (List Prices) as higher than what they were originally selling for, giving the illusion that the customer is receiving a steep discount.
“The Fire TVs are not in fact on ‘sale,’” reads the lawsuit. “The advertised sales prices are not ‘limited time deals.’ The List Prices are not real. Amazon tricks its customers into buying Fire TVs by making them believe they are buying Fire TVs at steep discounts. Amazon omits critical information concerning how long putative 'sales” would last, and when the List Prices were actually in use, which Plaintiff and class members relied on to their detriment. Amazon’s customers spent more money than they otherwise would have if not for the purported time-limited bargains.”
The lawsuit claims that a List Price is “the suggested retail price of a new product as provided by a manufacturer, supplier, or seller,” and that Amazon will display one next to products (except for books) if “the product was purchased by customers on Amazon or offered by other retailers at or above the List Price in at least the past 90 days.”
Ramirez claims that he purchased a Fire TV V 50” 4-Series 4K for $299.99 in February on Amazon. He alleges that the TV was advertised as being on sale for 33% off under a “limited time deal.” The list price that Amazon posted for the TV was $449.99, so Ramirez believed he was getting the TV for $150 off.
“Unbeknownst to Plaintiff, at the time he made his purchase, the Fire TV he had purchased had never been offered for sale by Amazon at its advertised List Price within the preceding 90-day period, making Amazon’s representation that ‘the product was purchased by customers on Amazon or offered by other retailers at or above the List Price in at least the past 90 days’ literally false,” reads the lawsuit.
The lawsuit claims that between mid-October 2023 and late July 2024, the TV actually sold for prices between $290 and $330, never $449.99.
Amazon allegedly conducted "short" price hikes for Fire TVs
It also alleges that some Fire TV products, before Sept. 10, would sell for the actual List Price for “an extremely short period,” and in some instances, for one day. The price would then “immediately” be lowered back to “the normal sales prices.”
“Amazon conducted these short spikes in price up to the List Price solely for the purpose of trying to make the stated List Prices literally true,” reads the lawsuit.
Ramirez is seeking damages and, in the alternative, restitution through the lawsuit.
Amazon did not immediately respond to TheStreet's request for comment.
Amazon previously faced backlash for Prime Day sales
The legal challenge comes after Amazon faced criticism from consumers last year for its Prime Big Deal Days event, which took place on Oct. 10-11. Consumers took to social media to blast the company for allegedly hiking up prices for multiple products days before the event took off so that they could be “discounted” to a price that was either the same or higher than it was before to give the appearance that customers were getting a deal.
Amazon Prime Day sales are not that impressive
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