Amazon Accused of Exploiting Consumers Through COVID-19 Pandemic in Lawsuit

By Alyssa Wilson Published: July 8, 2021

Amazon Accused of Exploiting Consumers Through COVID-19 Pandemic in Lawsuit

FILE - In this Oct. 1, 2020 file photo, an Amazon Prime logo appears on the side of a delivery van as it departs an Amazon Warehouse location in Dedham, Mass. Amazon, is one of the few companies that has thrived during the coronavirus outbreak. People have turned to it to order groceries, supplies and other items online, helping the company bring in record revenue and profits between April and June. That came even though it had to spend $4 billion on cleaning supplies and to pay workers overtime and bonuses. (AP Photo/Steven Senne, File)

By: Alyssa Wilson

A class-action lawsuit filed in California against Amazon accuses the company of “exploiting consumers in their most vulnerable hour.”

According to Business Insider, the lawsuit says Amazon hiked up prices of cleaning supplies, medical items, canned food and other necessary items in high demand during the COVID-19 pandemic.

The lawsuit says Americans turned to online retailers, including Amazon, during the height of the pandemic. During that time, stay-at-home orders went into effect and information on the virus was still limited.

“In this environment— consistent with the directions of government and public health officials— consumers have understandably turned to online purchasing, and Amazon in particular, to fulfill their essential needs,” the lawsuit says.

According to the lawsuit, the price of some essential items jumped exponentially, including the price of face masks, which spiked 500%, and disinfectants, which went up by 100%. “Some of the unlawful increases were on sales of products supplied by third parties, sales which Amazon controls and reaps huge profits from,” the document says.

In March, Amazon said it removed thousands of sellers for price gouging during the pandemic. Although there is no federal legislation banning price gouging, many states condemn and outlaw the practice during national emergencies.