Amazon to face UK class action lawsuit for using Buy Box's 'secretive algorithm' to dominate market
amazon
The Internet shopping giant, Amazon Inc is facing a UK class action lawsuit on allegations it's dominating the online market using a "secretive algorithm."
According to Hausfeld, the law firm behind this complaint, Amazon has allegedly forced millions of customers to pay more by concealing better offers on the website and app to promote its own products. It was further claimed that the company is able to accomplish this by using the Buy Box feature known as "secretive and self-favoring algorithm,"alarabiya news reported.
A judge will still need to formally declare the lawsuit to be a class action. Class action lawsuits mean that an individual does not have to be included to get involved in it.
By October 31, according to Hausfeld, the lawsuit will be brought against the IT company for possible losses, damages could reach nearly £900 million ($1 billion).
The tens of millions of people who were involved in the lawsuit will be represented by a consumer right consultant, Julie Hunter.
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Along with this situation, the Buy Box on Amazon has also come under investigation. The European Commission is under negotiation to resolve the matter.
Attorney for Hausfeld stated, "Amazon takes advantage of consumers’ well-known tendency to focus on prominently placed and eye-catching displays, such as the Buy Box."
(With inputs from agencies)
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