A proposed class action lawsuit alleges that Amazon violated its contract with major members last year and stopped providing two-hour free delivery services for whole foods costing $35 or more.
The case filed in the Seattle District Court on Tuesday listed two California residents as plaintiffs. They said that the whole food distribution benefit was the main motivation to sign up as a major member.
Amazon purchased this grocery chain store with us $13.7 billion in august2017, and began to launch free whole food grocery distribution for major members in february2018, and then implemented a surcharge of US $9.95 in September 2021.
The surcharge was imposed after the surge in demand for groceries distribution during the influenza pandemic. As we all know, the economic difficulties of grocery distribution, Amazon has regularly changed Amazon’s fresh distribution costs and business model over the years, trying to create a viable business.
“Hundreds of thousands, if not millions, of Amazon premium members pay membership fees because they want to take advantage of Prime’s free whole food delivery service,” the lawsuit claims. “Due to Amazon’s unfair business practices, consumers paid $119 for a service that was unfairly terminated.”
We have contacted Amazon to comment on the lawsuit.
The lawsuit claims that whole foods delivery customers who terminate their primary membership after Amazon collects a surcharge cannot get a full or partial refund according to Amazon’s primary cancellation policy.
The plaintiff sought compensation for unspecified economic losses, alleging violation of the Washington Consumer Protection Act, breach of contract, breach of good faith and fair dealing obligations, and unjust enrichment.
Amazon raised the annual price of prime from $99 to $119 in june2018, and then to $139 in March this year, because prime members have higher subscription costs and higher revenues.