Amazon Faces Legal Setback in Price-Gouging Lawsuit

In a significant legal development for consumers, U.S. District Judge Robert S. Lasnik has denied Amazon.com Inc.'s motion to dismiss a class-action lawsuit that accuses the e-commerce giant of price-gouging during the COVID-19 pandemic. The decision, announced on January 5, 2026, has been hailed by attorneys at Hagens Berman as a substantial victory for consumers who allege that Amazon profited excessively during a time of crisis.

The lawsuit, originally filed on April 21, 2020, claims that Amazon engaged in unlawful price increases for essential goods, with reported increases reaching as high as 1,800 percent. Plaintiffs cite alarming examples, including:

These price hikes allegedly occurred during a period when many consumers relied on Amazon for essential supplies amidst the pandemic.

Judge Lasnik's ruling emphasized that the plaintiffs had plausibly asserted that Amazon exploited vulnerable consumers who turned to the platform for basic goods during a public health emergency. The judge stated that Amazon had recognized the harmful nature of price gouging and had even created systems to mitigate excessive pricing, which contradicts the company's argument that the definition of price gouging is too vague.

Steve Berman, managing partner at Hagens Berman, stated, "This is a significant victory for consumers who allege that Amazon made billions in excess profits during the pandemic." He pointed out that the court's findings bolster the consumers' claims and could pave the way for accountability for corporate practices during crises.

In addition to denying the motion to dismiss, Judge Lasnik criticized Amazon's legal tactics, particularly its subpoenas aimed at intimidating class representatives. The court quashed several subpoenas, describing them as efforts to harass and embarrass the plaintiffs and pressure them to withdraw from the case. "The reasonable inference is that Amazon is trying to make this litigation as difficult, burdensome, and potentially embarrassing as possible for the named plaintiffs' closest associates," Judge Lasnik noted.

This aspect of the ruling reinforces protections for class representatives, encouraging consumers to hold powerful corporations accountable without fear of reprisal.

The court previously upheld the rights of consumers under Washington’s Consumer Protection Act (CPA), affirming that Amazon’s alleged price-gouging practices constituted an "unfair or deceptive act" and resulted in substantial injury. The proposed class includes all individuals who purchased emergency goods between January 31, 2020, and October 20, 2022, at unfair prices, with detailed assessments of these prices to be determined in future proceedings.

As the case progresses, plaintiffs seek repayment for alleged price-gouging and treble damages, along with injunctive relief to prevent future overpricing by Amazon. This lawsuit is part of a broader legal landscape where Hagens Berman is actively pursuing multiple consumer cases against Amazon regarding price-fixing and other potential violations.

The court's rulings represent a pivotal moment in the ongoing scrutiny of corporate practices during emergencies, and the implications of this case could resonate beyond the immediate financial stakes for Amazon, impacting consumer protection standards in the long run.