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.

Goodacre expressed confidence that the Competition Appeal Tribunal would authorize the claim to proceed, emphasizing the significance of this case for small independent retailers in the U.K.

Amazon £1B Data Misuse Class Action : Legal Representation and Support

BIRA is represented by Sarah Ford KC of Brick Court Chambers and Jason Pobjoy of Blackstone Chambers, with legal guidance from Boris Bronfentrinker, Elaine Whiteford, and Michelle Clark of Willkie Farr & Gallagher (UK) LLP. Litigation Capital Management is funding the claim.

Boris Bronfentrinker, a partner at BIRA's law firm, noted that this collective action exemplifies the type of claim for which the collective action regime was designed. He commended BIRA for standing up for U.K. retailers against Amazon's practices.

Amazon's Response and Other Legal Challenges

Amazon did not immediately respond to requests for comment. This lawsuit adds to Amazon's legal challenges, including a proposed class action in Washington federal court. That case alleges "hundreds of millions" of customers overpaid for items due to Amazon rigging algorithms to favor its own retailers and third-party sellers using its fulfillment service.