Judge Rules Amazon Must Face Price Gouging Lawsuit

• Judge Robert Lasnik ruled against Amazon's claim that Washington state consumer protection laws were vague as applied to pricing practices
• Consumers allege Amazon failed to prevent third-party sellers from charging excessive prices on its platform during the pandemic
• The lawsuit is structured as a proposed class action, potentially affecting numerous consumers who claim to have suffered financial losses

Summary: Amazon Faces Price Gouging Lawsuit Over COVID-19 Pandemic Practices

Key Development:

On January 5, 2026, U.S. District Judge Robert Lasnik in Seattle rejected Amazon.com's motion to dismiss a price gouging lawsuit related to the COVID-19 pandemic. The ruling allows the proposed class action to proceed against the e-commerce giant.

Case Details:

The lawsuit accuses Amazon of failing to prevent third-party sellers on its platform from charging excessive prices during the pandemic. Judge Lasnik found Amazon's defense "unpersuasive," specifically dismissing the company's argument that Washington state consumer protection laws were too vague as applied to pricing practices.

Plaintiff Claims:

Consumers in the proposed class action allege they suffered financial losses because Amazon did not take adequate steps to stop price gouging by sellers using its marketplace during the COVID-19 crisis.

Legal Implications:

The decision represents a setback for Amazon in its hometown of Seattle and exposes the company to potential liability for seller conduct on its platform. The ruling suggests courts may hold e-commerce platforms accountable for monitoring and preventing exploitative pricing by third-party vendors during emergency situations.

Market Context:

This case highlights ongoing scrutiny of Amazon's marketplace practices and its oversight responsibilities for third-party sellers. The outcome could set precedent for how online platforms must police pricing during public health emergencies or other crisis situations, potentially affecting business operations and compliance costs across the e-commerce sector.

The case now moves forward to the next phase of litigation, with potential financial and reputational implications for Amazon.