Amazon is facing a multibillion-pound legal challenge in the UK after being accused of artificially inflating prices paid by tens of millions of British consumers.
The Association of Consumer Support Organisations (ACSO), a non-profit group, has applied to launch a collective legal action on behalf of 45 million customers who bought products from Amazon since 2019. It alleges that the e-commerce giant prevented independent sellers from offering cheaper prices on their own websites, thereby restricting competition and driving up costs for consumers.
If successful, the “opt-out” claim could see millions of Britons automatically entitled to refunds, without having to join the action individually.
Matthew Maxwell-Scott, founder and executive director of ACSO, said: “Millions of people in the UK make purchases on Amazon every day. Despite the company’s assurances that it is above all else ‘customer-obsessed’, we consider there are strong grounds to argue that UK consumers have paid higher prices because of Amazon’s pricing policies. This action will ensure that consumers can obtain redress for the considerable losses they have suffered.”
The lawsuit echoes long-running battles between Amazon and regulators abroad. In the US, the Federal Trade Commission filed a case in 2023 claiming Amazon used its “monopoly power to inflate prices” by penalising sellers who offered discounts elsewhere. Although parts of that claim were dismissed, the case is proceeding to trial.
The move underlines the growing prevalence of US-style class actions in Britain since reforms under the Consumer Rights Act 2015. Collective cases have become a mounting risk for multinational corporations, with researchers at the European Centre for International Political Economy warning in June that mass litigation could cost the UK economy £18bn by deterring investment.
Amazon has faced scrutiny in Britain before. A 2013 probe into its pricing practices led to voluntary changes to address regulator concerns. But ACSO argues its business model continues to prevent “healthy price competition”.
Amazon has rejected the claims. A spokesman said: “This claim is without merit and we’re confident that will become clear through the legal process. Amazon features offers that provide customers with low prices and fast delivery. In fact, according to independent analysis by Profitero, Amazon has maintained its position as the lowest-priced online retailer in the UK for the fifth consecutive year.
“We remain committed to supporting the 100,000 independent businesses that sell their products on our UK store, which generate billions of pounds in export sales every year.”
The case will be closely watched by retailers and investors given its potential scale. Amazon’s UK business serves more than 45 million customers and supports around 100,000 third-party sellers. A ruling against the company could open the door to one of Britain’s largest ever consumer compensation awards.
It also comes at a delicate time for the company’s regulatory standing in the UK. Doug Gurr, Amazon’s former UK boss, was earlier this year appointed to lead the Competition and Markets Authority, the very watchdog that has previously examined its pricing practices.
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Amazon faces multibillion-pound legal action over alleged price inflation for UK shoppers