Amazon posts ‘fake’ prices for a popular product line, says lawsuit

Amazon (AMZN) is facing a category-action lawsuit for allegedly falsely advertising a favored product line with “fake” List Prices and discounts to “trick” customers into making a purchase order.

At some point of the lawsuit, which became filed on Sept. 12, Amazon customer David Ramirez is accusing the corporate of misleading customers about the prices of its Fire TVs by tricking them into thinking that they're getting a “limited time deal.”

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He alleges that Amazon achieves this by putting the TVs on sale but marking up the former prices of the products (List Prices) as higher than what they were initially selling for, giving the illusion that the client is receiving a steep bargain.

“The Fire TVs should not accurately on ‘sale,’” reads the lawsuit. “The advertised sales prices should not ‘limited time deals.’ The List Prices should not real. Amazon tricks its customers into buying Fire TVs by making them trust they are buying Fire TVs at steep discounts. Amazon omits important information relating how long putative 'sales” would last, and when the List Prices were essentially in use, which Plaintiff and class members relied on to their detriment. Amazon’s customers spent more cash than they otherwise would have if not for the purported time-limited bargains.”

The lawsuit claims that a List Price is “the suggested retail price of a new product as provided by a manufacturer, supplier, or seller,” and that Amazon will display one next to products (aside from for books) if “the product became purchased by customers on Amazon or offered by other retailers at or above the List Price in as a minimum the past Ninety days.”

Ramirez claims that he purchased a Fire TV V 50” 4-Series 4K for $299.99 in February on Amazon. He alleges that the TV became advertised as being on sale for 33% off less than a “limited time deal.” The list price that Amazon posted for the TV became $449.99, so Ramirez believed he became getting the TV for $A hundred and fifty off.

“Unbeknownst to Plaintiff, at the time he made his purchase, the Fire TV he had purchased had never been offered for sale by Amazon at its advertised List Price within the preceding Ninety-day period, making Amazon’s representation that ‘the product became purchased by customers on Amazon or offered by other retailers at or above the List Price in as a minimum the past Ninety days’ literally false,” reads the lawsuit.

The lawsuit claims that between mid-October 2023 and late July 2024, the TV essentially sold for prices between $290 and $330, never $449.99.

Amazon allegedly conducted "short" price hikes for Fire TVs

It also alleges that some Fire TV products, ahead of Sept. 10, would sell for the true List Price for “an exceptionally short period,” and in some instances, for one day. The value would then “without delay” be lowered back to “the conventional sales prices.”

“Amazon conducted these short spikes in price as much as the List Price solely for the aim of looking to make the stated List Prices literally true,” reads the lawsuit.

Ramirez is in search of damages and, within the alternative, restitution at some stage in the lawsuit.

Amazon failed to without delay reply to TheStreet's request for comment.

Amazon previously faced backlash for Prime Day sales

The legal challenge comes after Amazon faced criticism from consumers last year for its Prime Big Deal Days event, which came about on Oct. 10-11. Consumers took to social media to blast the corporate for allegedly hiking up prices for multiple products days ahead of the event took off in order that they'll be “discounted” to a cost that became either the identical or higher than it became ahead of to present the looks that customers were getting a deal.

Amazon Prime Day sales should not that spectacular
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