Retailers announced Thursday their intent to file a £1 billion ($1.3 billion) class action lawsuit against Amazon in London, accusing the e-commerce giant of illegally misusing their data to boost its sales and profits.
Amazon £1B Data Misuse Class Action : Data Misuse and the “Buy Box”
The claim, spearheaded by the British Independent Retailers Association (BIRA), alleges Amazon exploited data from U.K. retailers and manipulated its “Buy Box” to divert revenue and profits to itself starting from October 2015. The “Buy Box” prominently features the “buy now” and “add to cart” buttons, which can significantly influence purchasing decisions.
A BIRA spokesperson highlighted the misuse of confidential, commercially valuable information. Amazon allegedly used this data to decide on the introduction of new products, design them, and bring them to market, all while using the “Buy Box” to enter markets and siphon profits from U.K. retailers.
Largest Collective Claim Under Competition Act
This class action represents the largest collective claim under the U.K.’s 1998 Competition Act since it was amended in 2015 to permit collective damages claims. Andrew Goodacre, BIRA’s chief executive, described the filing as a crucial step towards securing compensation for retailers affected by Amazon’s alleged misconduct.
