A powerful new coalition of lawyers are lining up possible class action lawsuits against online giant Amazon, which could include evidence of alleged breaches of competition law and GSCOP.
Lawyers who have founded the new Responsible Online Commerce Coalition (ROCC) said they hoped to garner support from small and large businesses among the 250,000 companies selling on the Amazon platform, with the focus of its evidence based on markets in the UK, US and Europe.
Speaking exclusively to The Grocer this week, one of the lawyers spearheading the body, Tom Smith, a partner at Geradin Partners in London and formerly legal director of the Competition & Markets Authority, said it regarded the Groceries Supply Code of Practice as “part of its arsenal” to use against Amazon.
The ROCC has listed a raft of areas of concern over the actions of the online behemoth, including sellers not having equal access to the platform, lacking a fair dispute resolution process and the freedom to set prices and offer discounts, as well as not having equal access to data from the platform.
Its move is timed to take advantage of legislation launching in the UK in April via a new Digital Markets Unit within the CMA, which will set out new rules for competition and fairness in online markets, with Amazon one of the big guns set to come under greater scrutiny.
Amazon is already under the jurisdiction of the Groceries Code Adjudicator, which has shone a spotlight on several of its practices in dealing with suppliers, including the controversial algorithm-based delisting process known as CRAP (cannot realise a profit).
Amazon has since announced a series of changes to its practices, in January committing to provide “reasonable written notice” when products are red flagged by its system.
However, it has continued to attract complaints from suppliers that it is allowed to operate in ways that traditional retailers cannot.
The ROCC is offering anonymised monthly memberships to Amazon sellers on a sliding scale. Those with revenues of less than £850,000 will pay between £8 and £45, while companies with revenues above £850,000 will pay more.
Its recruitment page states: “We understand that businesses that rely on Amazon or other large platforms may have serious concerns about the possibility of economic retaliation and, therefore, desire to remain anonymous.
“We promise to keep members’ identities confidential if they choose to join anonymously unless disclosure is required by law.”
Smith, who led the legal team on the UK’s Digital Markets Taskforce, which was set up to advise the CMA on how a Digital Markets Unit could oversee companies such as Amazon, Google, Apple and Meta, said. “We don’t see ourselves as attack dogs. We don’t see ourselves as an attack on Amazon. We are an evidence-based group of lawyers with vast experience of competition laws.
“We are looking to attract companies of all sizes, from smaller suppliers to large companies, who may have concerns about the way it operates.
“We’re confident the new Digital Markets Unit will be given the teeth that is needed to tackle these issues and a class action is an area we are definitely looking at.”
Similar moves to provide tougher rules for online giants have also been taking place in the EU and Europe, while the ROCC this week gave evidence to the US senate.
Amazon has been approached for comment.
No comments yet