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Amazon must face US nationwide class action over third-party sales

reuters.com

21–30 of 108 posts

Re: Amazon must face US nationwide class action over third-party sales

#21
post #18

Earlier quoted context omitted.

Unfortunately this approach seems to fly all the time for large businesses. Plucky startup takes the 'ask forgiveness rather than permission' approach and ignores a bunch of regulations, legal system doesn't care because they're just a plucky startup. 10 or so years later plucky startup is a massive corpo, another 5 or so years later the legal system catches up but they're a massive corpo making piles of cash and the…

>up but they're a massive corpo making piles of cash and the worst the legal system can do at that point is penalize them with the equivalent of pocket change compared to the piles of cash they made while ignoring those regulations. Examples? Usually when I see this argument being brought up, it's usually something like "[multinational megacorp] fined $x for breaking Belgian privacy laws", and then people pile in say…

Equifax: In September of 2017, Equifax announced a data breach that exposed the personal information of 147 million people. The company has agreed to a global settlement with the Federal Trade Commission, the Consumer Financial Protection Bureau, and 50 U.S. states and territories. The settlement includes up to $425 million to help people affected by the data breach.

Apparently, your personal information is worth about $2.90.

Re: Amazon must face US nationwide class action over third-party sales

#22
post #21
post #18

Earlier quoted context omitted.

>up but they're a massive corpo making piles of cash and the worst the legal system can do at that point is penalize them with the equivalent of pocket change compared to the piles of cash they made while ignoring those regulations. Examples? Usually when I see this argument being brought up, it's usually something like "[multinational megacorp] fined $x for breaking Belgian privacy laws", and then people pile in say…

Equifax: In September of 2017, Equifax announced a data breach that exposed the personal information of 147 million people. The company has agreed to a global settlement with the Federal Trade Commission, the Consumer Financial Protection Bureau, and 50 U.S. states and territories. The settlement includes up to $425 million to help people affected by the data breach. Apparently, your personal information is worth abo…

>Equifax: In September of 2017, Equifax announced a data breach that exposed the personal information of 147 million people. The company has agreed to a global settlement with the Federal Trade Commission, the Consumer Financial Protection Bureau, and 50 U.S. states and territories. The settlement includes up to $425 million to help people affected by the data breach.

How much money did they make from the breach though? The argument made by the gp was that the fines were "pocket change compared to the piles of cash they made while ignoring those regulations.". According to FTC's press release, they were fined at least $575M for "failure to take reasonable steps to secure its network". How much do you think did you think equifax saved by skimping on security? Probably not $575M. They got pwned by an outdated third party library. There's no way keeping your libraries up to date is going to cost anywhere near that amount.

Re: Amazon must face US nationwide class action over third-party sales

#23
post #13

Earlier quoted context omitted.

Looking at Amazon's filings, the argument they made is the following: >Given the unprecedented size of the proposed class consisting of 288 million members, the individualized issues on which their claims depend, and the overwhelming evidence that the challenged conduct resulted in lower prices in Amazon’s store, Plaintiffs have not—and cannot demonstrate that a class action would be manageable. The "individualized i…

I don't see the difference between what the lawyers are saying and the parent's summary of it. > we've wronged too many people to be held accountable Sounds like exactly what it is... it's too big of a class to be managed, and therefore should not be? In fact, the very next line is the judge saying: > Chun found there was no evidence at this stage that the size of the class was overbroad. Other federal courts had cer…

>Sounds like exactly what it is... it's too big of a class to be managed, and therefore should not be?

You missed the other 2 of the 3 parts of that argument.

>In fact, the very next line is the judge saying:

I'm not saying they're objectively right, just that there's more to the argument than "we've wronged too many people to be held accountable".

Re: Amazon must face US nationwide class action over third-party sales

#24
post #9

Earlier quoted context omitted.

The federal government actually makes that argument all the time, and often prevails with it.

What sources do you have to back this claim up?

One easy-to-find example: https://www.aclu.org/news/national-security/too-big-comply-n...

Re: Amazon must face US nationwide class action over third-party sales

#25
post #9

Earlier quoted context omitted.

The federal government actually makes that argument all the time, and often prevails with it.

What sources do you have to back this claim up?

The DoD is legally mandated to pass an audit but consistently doesn’t: https://thehill.com/policy/defense/4992913-pentagon-fails-7t...

Re: Amazon must face US nationwide class action over third-party sales

#26
post #5

It’s quite awful that the best this country can do at "enforcing" antitrust violations is through class action lawsuits. The only people that benefit here are the lawyers on both sides.

That's what a do-nothing Congress gets you.

Re: Amazon must face US nationwide class action over third-party sales

#27
post #23

Earlier quoted context omitted.

I don't see the difference between what the lawyers are saying and the parent's summary of it. > we've wronged too many people to be held accountable Sounds like exactly what it is... it's too big of a class to be managed, and therefore should not be? In fact, the very next line is the judge saying: > Chun found there was no evidence at this stage that the size of the class was overbroad. Other federal courts had cer…

>Sounds like exactly what it is... it's too big of a class to be managed, and therefore should not be? You missed the other 2 of the 3 parts of that argument. >In fact, the very next line is the judge saying: I'm not saying they're objectively right, just that there's more to the argument than "we've wronged too many people to be held accountable".

So it's not really a strawman at all, and it was in fact one of their main arguments. They just also made other arguments on top of that...

Seems to me the parent was totally justified in calling it a wild argument.

Re: Amazon must face US nationwide class action over third-party sales

#28
post #11

> The consumers’ 2021 lawsuit said Amazon violated antitrust law by restricting third-party sellers from offering their products for lower prices elsewhere on rival platforms while they are also for sale on Amazon. I've noticed that third-party sellers generally get around this by having the same list price on their own site, but basically offering everyone a coupon for 15-30% off. Not just for signing up for e-mails…

That can easily be perceived as violating the ToS and get you kicked off the marketplace. Big risk to take if that's where you're making most of your $.

I doubt it. I've seen this for products with 10,000+ reviews. It's totally mainstream. If Amazon had a problem with it, they would have cracked down already.

What can they say, that "20% off your cart" coupons are prohibited anywhere else the product is listed? That's not feasible. You see North Face doing the same thing with sports retailers. Their jackets never go on sale, but retailers make cart-wide promotions available so you can still get the discount.

Re: Amazon must face US nationwide class action over third-party sales

#29

> The consumers’ 2021 lawsuit said Amazon violated antitrust law by restricting third-party sellers from offering their products for lower prices elsewhere on rival platforms while they are also for sale on Amazon. I've noticed that third-party sellers generally get around this by having the same list price on their own site, but basically offering everyone a coupon for 15-30% off. Not just for signing up for e-mails…

Neither here nor there, but about 15 years ago while I was a fresh grad/hire at Amazon, I realized that the crawler that was supposed to enforce this had not been running for multiple years. I went out and fixed it and got it running again, and I showed about $8M/month revenue increase from this.

What did I get? From my skip level manager: "Great job, but too bad about that bug. Next time if it's perfect we can talk about promo" (the crawler went down for a day from an edge case that was preexisting, I fixed it same day)

Re: Amazon must face US nationwide class action over third-party sales

#30
post #18

Earlier quoted context omitted.

>up but they're a massive corpo making piles of cash and the worst the legal system can do at that point is penalize them with the equivalent of pocket change compared to the piles of cash they made while ignoring those regulations. Examples? Usually when I see this argument being brought up, it's usually something like "[multinational megacorp] fined $x for breaking Belgian privacy laws", and then people pile in say…

Uber and Lyft with regard to taxi and contractor/employee laws, Google in regards to privacy, Meta in regards to basically everything...

You haven't identified a specific case in any of the examples so I asked an LLM to do it for you, and came up with two:

1. O'Connor v. Uber Technologies, Inc (2013): So far as I can tell, they settled for $20M, but the settlement allowed uber to continue classifying drivers as contractors. You might be able to spin this as how uber is above the law or whatever, but the alternate take is that the drivers had a weak case, and were settling for whatever they could get. Not the best case to argue that companies are fined too little.

2. New York AG vs Uber: it seems like the settlement was two parts: a cash payout for past drivers and additional benefits to drivers going forward. Digging deeper into the settlement, it looks like for the former like uber's crime was improperly deducting sales taxes and black car fees[1], rather than failing to pay benefits. It doesn't look like uber got fined at all for not providing benefits. Again, you can frame this as uber being so above the law that they got fined $0 (!), but the argument from above applies. Maybe the NY AG had a weak case. Clearly they're willing to fine uber for something as vague as improper sales tax deductions, so why didn't they go for damages for uber not paying benefits?

[1] https://ubernyagsettlement.com/Portals/0/Document%20Files/NY...

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