Amazon asks judge to toss U.S. class action over Prime benefits

Amazon.com has asked a federal judge to dismiss a proposed U.S. class action accusing it of misleading customers about the benefits of its Prime service

A representative for Amazon did not immediately respond to requests for comment [File] | Photo Credit: Reuters

Amazon.com has asked a federal judge to dismiss a proposed U.S. class action accusing the e-commerce giant of misleading customers about the benefits of its paid subscription Prime service.

Amazon said in a filing in Seattle federal court on Monday that the benefits of Prime membership are subject to change, and that Amazon has “sole discretion” to add or remove perks such as free delivery for online orders from the grocer Whole Foods Market (WFM).

The company denied violating a Washington state consumer protection law that prohibits deceptive advertising and other unfair practices. Earlier rulings in the case knocked out other claims including fraud and breach of contract.

“Amazon never guaranteed that free WFM delivery, or any other Prime benefit for that matter, would remain available,” it told U.S. District Judge Tana Lin. Amazon said Prime's terms “expressly and unequivocally” state benefits can change.

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Amazon bought Whole Foods in 2017 for $13.7 billion.

A representative for Amazon did not immediately respond to requests for comment.

Ronald Marron, representing the consumer plaintiffs, in a statement said Amazon should be "held to the same good faith and fair commercial standards which are inherent in every commercial contract and transaction in the State of Washington."

The lawsuit alleged Amazon’s marketing about Whole Foods deliveries for Prime members is “false, misleading and likely to deceive a reasonable consumer.”

Amazon countered that it had not concealed a $9.95 “service fee” during the purchase and checkout process online at Whole Foods.

Attorneys for the plaintiffs estimated there are hundreds of thousands of members in the class.

Amazon is fighting an array of other lawsuits in state and federal courts from consumers, businesses and government agencies challenging the Seattle-based company’s business practices.

In one case, the U.S. Federal Trade Commission last year accused the company of using unlawful monopoly power to block competitors and charge inflated prices. In another, consumers have sued over claims that Amazon was charging consumers for purchases that were returned on time.