Arizona Attorney General Kris Mayes announced on Wednesday that the state is suing Amazon for unfair and deceptive business practices. The lawsuit alleges violations of the Arizona Consumer Fraud Act and the Arizona Uniform State Antitrust Act.
The lawsuit highlights several issues with Amazon’s business practices, including its Prime cancellation process and Buy Box algorithm. Internal documents revealed that Project Iliad, Amazon’s Prime cancellation process, was designed to be confusing and misleading, making it difficult for users to cancel their subscription. This resulted in a successful reduction of Prime cancellations by 14%. Similarly, the Buy Box algorithm is accused of favoring offers that maximize Amazon’s profits, even if they are not the best deal for consumers.
The lawsuit also accuses Amazon of enforcing price parity agreements that hinder competition and inflate prices for consumers. These agreements prevent third-party sellers from offering lower prices outside of Amazon, giving the company an unfair advantage in the market. Mayes emphasized the importance of treating consumers fairly and providing a level playing field for small businesses. She called on Amazon to change its business practices to comply with Arizona law.
Mayes stated that Amazon’s actions have artificially raised prices for Arizona consumers and harmed smaller third-party retailers who rely on its platform. The Attorney General emphasized the importance of holding all businesses accountable and ensuring they follow the same laws.
In conclusion, Attorney General Kris Mayes filed a lawsuit against Amazon for unfair and deceptive business practices in Arizona. The lawsuit accuses Amazon of violating state law through various actions such as confusing Prime cancellation process, misleading Buy Box algorithm, enforcing price parity agreements among others. Mayes urged Amazon to change its ways to ensure consumer protection while promoting fair competition in the marketplace.
