Washington Supreme Court Delivers Massive Victory to Consumers in Price-Gouging Lawsuit Against Amazon

In a victory for consumers, Washington state’s Supreme Court today filed an opinion in an active class-action lawsuit filed against Amazon.com accusing the world’s largest online retailer of price-gouging during the COVID-19 pandemic, according to attorneys at Hagens Berman.

Nine judges participated, with only two dissenting, upholding the rights of consumers under Washington’s Consumer Protection Act (CPA) that Amazon’s alleged price-gouging during the COVID-19 pandemic constitutes an “unfair or deceptive act” as defined by the law and also caused substantial injury.

“Here, the plaintiffs adequately allege the third prong of the substantial injury test. They allege that there are no countervailing consumer or competitive benefits to Amazon’s practice of ‘price gouging’ during the pandemic,” the opinion states. “They contend that the only party that benefited from their respective transactions was Amazon, which ‘reaped blockbuster profits by charging excessive prices throughout the pandemic’ and these profits were ‘earned only by exploiting consumers who have been forced to rely on Amazon to obtain essential goods during this unprecedented public health crisis.’”

In its opinion, the court deemed Amazon’s cited cases defending the claims “unconvincing,” “unpersuasive” and “misplaced.”

“During the pandemic Amazon criticized third-party sellers on its Marketplace who raised prices of essentials when Congress made inquiries. Then Amazon began its own price-gouging, increasing prices on toilet paper and other essentials 300 to 1200 percent,” said Steve Berman, managing partner of Seattle-based Hagens Berman. “In a decision that is wonderful for consumers in the scope of the Washington Consumer Protection statute and the applicable tests for such a claim, consumers won.”

“We are incredibly pleased with the court’s opinion and look forward to continuing this case we began four years ago so that millions of patient consumers may see the benefits they deserve.”

How Amazon Became the Center of Consumer COVID Panic

The class-action lawsuit against Amazon was originally filed April 21, 2020, and claims Amazon engaged in unlawful price increases for essential goods by upwards of 1,800 percent. The complaint includes detailed price comparisons accusing Amazon of price-gouging, including the price of toilet paper increasing up to 1,044 percent, from $17.48 to $200; the price of cold remedies increasing up to 1,523 percent, from $4.65 to $79.00; and the price of face masks increasing up to 1,800 percent, from $4.21 to $79.99, among other instances.