Amazon deceives customers with fake sales during Prime Day, lawsuit claims

In September 2023, Cathy Armstrong and Oluwa Fosudo filed a proposed class-action lawsuit against Amazon in federal court in Washington state, accusing the company of misleading customers with false discounts during its summer Prime Day event that took place from July 8 to 11, 2023. The plaintiffs allege that Amazon used inflated list prices to present the discounts as better than they were, effectively luring consumers into purchases under false pretenses. Their complaint provides detailed examples where items, like headphones and an Android tablet, were claimed to be offered at significant discounts based on misleading price representations. For instance, the lawsuit highlights a pair of headphones that were advertised at a 44% discount off a list price of $179.95. However, the plaintiffs assert that the typical selling price for the headphones had consistently ranged from $130 to $160, casting doubt on the legitimacy of the claimed discount. In another significant example, an 8-inch Android tablet for kids was advertised as being available at 40% off, based on a misleading strikethrough list price of $119.99. The lawsuit states that in the two months preceding the sale, the tablet's pricing had varied between $50 and $85, and the asserted Prime Day price was misleading compared to the stable lower prices available before and after the event. The plaintiffs argue that their purchasing decisions were influenced by Amazon's allegedly dishonest marketing tactics, causing them to miss out on potentially better prices either on or off the platform. Both Armstrong and Fosudo contend that had Amazon not employed these deceptive tactics, they would have explored other options in the market or postponed their purchases. As awareness of these practices grew, further scrutiny of Amazon's pricing strategies was prompted by a report from Popular Information, a Substack publication that focuses on corporate accountability. Despite the allegations, Amazon has characterized the four-day Prime Day event as its most successful to date, claiming that customers collectively saved billions. However, the company has refrained from commenting on the lawsuit itself. The legal proceedings may not only impact Amazon's operational transparency but also influence public perception and trust in e-commerce retail practices moving forward, highlighting the ongoing debate over the ethics of online pricing strategies in a fast-paced commercial landscape.