200,000 sellers collectively sued Amazon for 24.8 billion yuan!

200,000 sellers collectively sued Amazon for 24.8 billion yuan!



Normal, once there is data abnormality, such as sales are falling, conversion rate is abnormal, flow is 0, etc., we need to deal with it in time. Regarding data analysis, we will mainly analyze store traffic data, sales data and advertising data. Through these data, we can observe whether today's sales have increased or decreased. If there is a problem, we can accurately know which link has the problem and make reasonable adjustments.

Amazon, the global leader in e-commerce, has recently been embroiled in a new dispute.


On June 6, the British Independent Retailers Association (BIRA) filed a class action lawsuit against Amazon for up to £1 billion on behalf of about 35,000 small traders. The core of the lawsuit is that Amazon is accused of abusing non-public data on its platform and using the data to suppress competitors and increase its market share.


As a result, on June 27, according to foreign media reports, Amazon is facing a new class action lawsuit in the UK!


It is understood that the lawsuit was initiated by Andreas Stephan, professor of competition law and dean of the law school at the University of East Anglia, on behalf of more than 200,000 Amazon's third-party sellers in the UK, demanding Amazon to pay 2.7 billion pounds in compensation (currently approximately 24.88 billion yuan).


Amazon is collectively sued for $3.4 billion by British sellers. Source: world.parhlo

▶On June 6, the core of the lawsuit by the British Independent Retailers Association BIRA


BIRA accused Amazon of using non-public data provided by merchants, such as sales data, inventory data, etc., to evaluate the strength and strategy of competitors. Amazon then used this data to adjust its own sales strategy and provide consumers with cheaper competitor products to attract more consumers to buy. This behavior not only makes small retailers lose their price competitiveness, but also makes them lose the opportunity to establish direct contact with consumers.


In addition, BIRA also accused Amazon of unfairly ranking and recommending merchants through its powerful algorithms and data analysis capabilities. Small retailers' products are often ranked at the bottom of search results or not recommended at all, making it difficult for them to get enough exposure and sales opportunities on the platform.


▶On June 27, 200,000 British third-party sellers filed a lawsuit


The lawsuit alleges that Amazon abused its dominant position in providing marketplace services to third-party sellers to attract British consumers through a range of unfair means - including prioritizing its own retail selection over products from third-party sellers in search results; favoring its own logistics service (i.e., FBA) and unfairly making Prime membership services conditional on the use of FBA.


The lawsuit also states that Amazon's actions make it difficult for third-party sellers to sell at lower prices on other platforms, thereby undermining cross-platform market competition.

Currently, the plaintiffs are actively recruiting more eligible third-party UK sellers to join the lawsuit. Any UK individuals and companies who used professional accounts to sell goods to UK consumers on Amazon between June 2018 and June 2024 are parties to this class action lawsuit.

The plaintiff is recruiting more eligible British sellers. Image source: amazon3psellerclaim



It is worth noting that the lawsuit by more than 200,000 sellers in the UK is a voluntary withdrawal class action, so eligible sellers will be automatically included in the lawsuit and do not need to pay any fees. If the case is ultimately won, all sellers who have not chosen to withdraw will be entitled to receive corresponding compensation or participate in the settlement.

In recent years, competition authorities in many countries have been investigating complaints about Amazon's "use of third-party data" and "violation of antitrust laws" and have filed lawsuits (last year, 17 state attorneys general in the United States alone filed lawsuits against Amazon). At the same time, they are also studying the various components of Amazon's operating market, including FBA and Prime. Therefore, relevant lawsuits should not be unfamiliar to everyone, but the scale of this class action lawsuit is rare.

This lawsuit is undoubtedly a huge challenge for Amazon. If the lawsuit is successful, Amazon may face huge fines and compensation, and may also be forced to change its business model and operating methods. In addition, this lawsuit may also have a far-reaching impact on the entire e-commerce industry, prompting other e-commerce platforms to pay more attention to fair competition and consumer rights protection.


This lawsuit is also of great significance to consumers. If Amazon is found to have abused its dominant market position, consumers will likely have more choices and lower prices. In addition, this lawsuit will also prompt Amazon to pay more attention to consumer rights protection and improve its service quality and transparency.


However, British retailers still face many challenges in order to succeed in the lawsuit. First, they need to prove that Amazon has indeed abused its dominant market position, which requires a lot of evidence and data support. Second, they need to face Amazon's powerful legal team and resources, which will be a difficult legal battle. Finally, they also need to gain the support of consumers and the public to increase the influence and chances of winning the lawsuit .


In conclusion, the class action lawsuit filed by the British Independent Retailers Association against Amazon has attracted widespread attention. This lawsuit is not only a challenge to Amazon's market behavior, but also a test of fair competition in the e-commerce industry. We hope that this lawsuit can promote the healthy development of the e-commerce industry and bring more benefits to consumers.

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