Amazon shoppers in the UK could receive a share of £900 million in compensation following a lawsuit.
The legal claim accuses the technological giant of pushing customers towards offers through the 'buy box' feature, which promote certain items above the rest. The lawsuit led by consumer-rights champion Julie Hunter, says Amazon breached competition law and caused customers to pay higher costs.
Those who has made a purchase on Amazon.co.uk or on the mobile app since October 2016 is an eligible member of the claimant class.
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Amazon is the biggest e-commerce company in the world with more than 80 per cent of purchases made through the featured offers in the 'buy box'. According to Ms Hunter, independent sellers are excluded from the buy box, even if they offer a cheaper deal - and this breaches UK and EU competition law.
As the Guardian reports reports, Ms Hunter said: “Many consumers believe that Amazon offers good choice and value, but instead it uses tricks of design to manipulate consumer choice and direct customers towards the featured offer in its Buy Box.
“Far from being a recommendation based on price or quality, the Buy Box favours products sold by Amazon itself, or by retailers who pay Amazon for handling their logistics. Other sellers, however good their offers might be, are effectively shut out – relegated down-page, or hidden several clicks away in an obscure corner of Amazon’s website.”
She adds that the feature is the only one considered and used by the vast majority of customers and assume it is the best deal. The legal action will seek damages from Amazon estimated in the region of £900m when it will be filed in the Competition Appeal Tribunal in London.
Speaking to BBC News, David Greene, from the London Solicitors Litigation Association said: "Clearly Amazon will fight the case at all stages, including class certification, but the tribunal has made a number of orders recently for similar actions, certifying the opt out process.
"Big tech companies are well resourced to fight."
Amazon said the claim was “without merit” and noted the company has focused on supporting the 85,000 businesses that sell their products on its UK marketplace. It also said more than half of sales of physical products on that marketplace come from third-party sellers.
“We always work to feature offers that provide customers with low prices and fast delivery,” the company said in a prepared statement.
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