Attorney General Files Lawsuit Against Amazon for Deceptive Business Practices in Arizona

Attorney General’s Office Sues Amazon for Unfair and Deceptive Business Practices

On Wednesday, Attorney General Kris Mayes of Arizona filed a lawsuit against Amazon for unfair and deceptive business practices. The lawsuit alleges that Amazon has violated the Arizona Consumer Fraud Act and the Arizona Uniform State Antitrust Act. Mayes stated that Amazon’s actions have artificially raised prices for Arizona consumers and harmed smaller third-party retailers who rely on its platform.

One aspect of the lawsuit focuses on Amazon Prime’s cancellation process, which the company internally called Project Iliad. The process was allegedly designed to be confusing and misleading, making it difficult for users to cancel their subscription. Internal documents revealed that Project Iliad successfully reduced Prime cancellations by 14%. Another part of the lawsuit targets Amazon’s Buy Box algorithm, which allegedly favors 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 allegedly prevent third-party sellers from offering lower prices outside of Amazon, giving the company an unfair advantage in the market. Attorney General Mayes stressed 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.

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