Major lawsuit over alleged Amazon price-fixing could benefit Canadians

Canadians who’ve shopped on Amazon might be a part of a brand new proposed class-action lawsuit in opposition to the world’s largest on-line retailer.

Quebec regulation agency Lex Group printed a discover stating that it filed a proposed class-action lawsuit in opposition to Amazon. The retailer faces allegations that it participated in a retail price-fixing scheme that artificially inflated costs throughout a number of on-line marketplaces.

The same lawsuit was filed within the U.S. in 2022 within the Superior Courtroom of the State of California in San Francisco. On April 20, California Lawyer Common Rob Bonta introduced the public release of evidence “clearly exhibiting Amazon’s unlawful value fixing scheme that’s artificially driving up costs for People.”

In Canada, the lawsuit was filed within the Superior Courtroom of Quebec in Montreal on April 21 in opposition to Amazon.com, Inc., Amazon.ca, Inc., Amazon.com.ca ULC, and Amazon Canada Achievement Providers ULC.

The allegations

In accordance with the court docket doc, Amazon allegedly contacted distributors when merchandise have been listed at decrease costs on competing retailers’ web sites and instructed them to “repair,” “right,” or “handle” these costs.

“Extra euphemistically, Amazon instructs distributors to ‘handle’ their ‘ channels’ — which means different retailers — to extend retail costs. These directives are backed by the specter of vital penalties for non-compliance,” reads the doc.

Amazon allegedly used distributors as intermediaries to affect pricing at competing retailers, serving to maintain costs excessive throughout on-line marketplaces, thereby leaving Canadian patrons with fewer low-cost choices. The doc additionally alleges that the corporate educated staff to keep away from creating data that might reveal proof of the alleged scheme, with an inner doc stating that it’s “typically higher to have these conversations over the cellphone.”

The lawsuit alleges that Amazon violated a number of legal guidelines, such because the Competitors Act, the Client Safety Act, and the Civil Code of Quebec. Along with damages and penalties, it seeks an injunction that might require Amazon to cease the alleged conduct.

In an e-mail to Each day Hive Canada, an Amazon spokesperson said, “These claims lack benefit, and Amazon seems to be ahead to contesting them in court docket.”

In 2025, the Competitors Bureau of Canada obtained a court docket order to research Amazon’s “Fair Pricing Policy,” which the bureau fears influences on-line pricing. This follows the Bureau’s investigation into Amazon’s advertising and marketing ways from June 2024.

Are you eligible?

Canadian residents might be eligible for compensation in the event that they bought merchandise on Amazon.ca or Amazon.com since Jan. 1, 2018. The definition for sophistication members may change or be modified sooner or later.

“We is not going to inform you or different members of the general public if and when the group definition is modified,” reads the positioning. “It’s subsequently your sole duty to make sure that your individual private rights and recourses are being protected always through the course of those proceedings.”

How a lot may you obtain?

The lawsuit is in search of compensation for patrons who allegedly paid larger costs on Amazon as a result of alleged misconduct. There is no such thing as a proposed quantity but, however it seeks damages equal to the distinction between the costs consumers paid and the costs that might have existed in a aggressive market. The lawsuit additionally states that it seeks punitive damages.

What do you have to do subsequent?

The lawsuit remains to be within the proposal stage, so for now, you don’t must do something. Nevertheless, you’ll be able to keep on high of updates by signing up online.