Lawsuit Claims Amazon Deceives Customers with Misleading Fire TV Sale Pricing

Lawsuit Claims Amazon Deceives Customers with Misleading Fire TV Sale Pricing

Lawsuit Claims Amazon Deceives Customers with Misleading Fire TV Sale Pricing


### Amazon Confronts Lawsuit Over Alleged “Fake List Prices” on Fire TVs

Amazon, the online retail behemoth, is currently under a class-action lawsuit asserting that the company has been deceiving consumers with “fake list prices and claimed discounts” on its Fire TV offerings. The lawsuit, lodged in the US District Court for the Western District of Washington on September 12, 2024, alleges that Amazon has been artificially raising the “List Prices” of Fire TVs and associated bundles to fabricate the appearance of notable discounts, thus luring customers into purchases under misleading circumstances.

#### The Claims

The lawsuit, led by claimant David Ramirez, contends that Amazon has been advertising Fire TVs at inflated “List Prices” that do not accurately represent the true market value or recent sales patterns of the products. Ramirez states that he acquired a 50-inch 4-Series Fire TV in February 2024 for $299.99, which was promoted as being 33% off its “List Price” of $449.99. However, per the lawsuit, this “List Price” was deceptive since the TV had not been sold at that price for a considerable duration.

At the moment, the same 50-inch 4-Series Fire TV continues to be featured on Amazon as having a “Limited time deal” of $299.98, alongside a “List Price” of $449.99. The lawsuit argues that Amazon’s pricing methods infringe upon Washington’s **Consumer Protection Act**, which forbids misleading business practices.

#### Price Monitoring Data

To substantiate the allegations, the lawsuit cites information from **Camelcamelcamel**, a well-known price-monitoring site that tracks Amazon’s pricing history. According to Camelcamelcamel, the lowest identified price for the 50-inch 4-Series Fire TV was $280 in July 2024. The site also indicates that the TV’s average price has hovered around $330.59, with the $300 price point or lower being available numerous times during 2023 and 2024. The TV was last sold at the $449.99 “List Price” in October 2023, with only brief instances in July and August 2024 where it was offered at that rate.

This information contradicts Amazon’s assertion that the “List Price” reflects the suggested retail price or the price at which the item was sold in the preceding 90 days. Amazon’s website features an information icon adjacent to “List Prices” that states:

> “The List Price is the suggested retail price of a new product as provided by a manufacturer, supplier, or seller. Except for books, Amazon will display a List Price if the product was purchased by customers on Amazon or offered by other retailers at or above the List Price in at least the past 90 days. List prices may not necessarily reflect the product’s prevailing market price.”

Nonetheless, the lawsuit claims that Amazon’s depiction of these List Prices is inaccurate and misleading, as the TVs in question were not sold at the promoted List Prices within the last 90 days.

#### Amazon’s Reaction

When approached by **Ars Technica**, a representative from Amazon opted not to comment on the ongoing legal proceedings. The lawsuit seeks both compensatory and punitive damages, along with an injunction to stop Amazon from perpetuating these alleged misleading practices.

#### “Amazon Deceives Its Customers”

The lawsuit further claims that Amazon’s strategy of inflating List Prices generates a “false sense of urgency” for consumers, convincing them they are securing a limited-time offer. This method, the lawsuit posits, coerces customers into spending more than they would have otherwise.

The legal filing additionally accuses Amazon of employing these strategies to artificially boost demand for Fire TVs, enabling the company to sustain elevated prices for the products. The lawsuit asserts that Amazon has utilized these deceptive practices across at least 15 different Fire TV models and bundles.

In certain instances, the lawsuit asserts, the List Price was only accessible for “an exceedingly short duration, in some cases as brief as a single day.” This further reinforces the claim that the List Prices were not genuine reflections of the product’s actual market value or recent sales trends.

#### Prior Legal Cases

This is not Amazon’s first encounter with legal challenges regarding its pricing methods. In 2021, the firm was sued in California for allegedly employing deceptive reference prices. In that instance, Amazon consented to pay $2 million in fines and restitution. The California suit similarly accused Amazon of inflating List Prices to make discounts appear more significant than they truly were.

Other technology companies have also faced penalties for comparable practices. For instance, **Dell Australia** was fined AUD $10 million (roughly $6.49 million) in 2023 for making false and misleading claims about discount prices for additional computer monitors. The Australian Competition & Consumer Commission determined that Dell had raised the initial prices of the monitors to enhance the perceived value of the discounts.

#### Safeguarding Consumers