Why Amazon is facing a price gouging lawsuit in US
06 Jan 2026

A US judge has denied Amazon's request to dismiss a proposed class-action lawsuit, accusing the online retail giant of price gouging during the COVID-19 pandemic.

The case was filed in Seattle, where Amazon is headquartered.

The plaintiffs allege that third-party sellers on Amazon's platform charged excessively high prices for essential goods like food and household items during the pandemic.

Allegations of price inflation
Accusations

The lawsuit also accuses Amazon of hiking prices on its own product inventory to profit from consumers in dire need.

The complaint cites some shocking examples of price hikes, including a 233% increase on Aleve pain relief tablets, a whopping 1,044% spike on Quilted Northern toilet paper, and an astronomical 1,800% surge on certain face masks.

Judge's response to Amazon's defense
Legal proceedings

US District Judge Robert Lasnik found Amazon's defense unconvincing.

He rejected the claim that Washington state consumer protection laws were vague when applied to pricing, and did not cover the alleged price gouging.

Lasnik said it was reasonable to assume that product shortages, public health directives, and the shift to online shopping left consumers with "no meaningful choice but to purchase from Amazon despite the allegedly unfair prices it was charging."

Lawsuit seeks damages for 'unfair' prices
Compensation sought

The lawsuit seeks damages for consumers who paid "unfair" prices for food and other consumer goods on Amazon between January 31, 2020, and October 20, 2022.

This was around the time when Washington and other states lifted COVID-related states of emergency.

Steve Berman, a lawyer representing the plaintiffs in this case, called the judge's decision "an important win for consumers."

Internal documents reveal knowledge of price gouging
Evidence

Berman also claimed that internal Amazon documents showed the retailer was aware of what price gouging was and had assured state attorneys general that it was trying to prevent such practices.

Notably, Amazon nor its lawyers have publicly commented on the lawsuit or the judge's decision to let it proceed.