00:00Amazon's 1,800% markup heads to court in biggest online gouging case in history.
00:07A single box of face masks that cost $4.21 in early 2020 surged to $79.99 on Amazon's platform
00:16as COVID-19 lockdowns intensified across America. Arm and hammer baking soda jumped from $4.65
00:24to $79, a staggering 1,523% increase documented in federal court filings. These weren't isolated
00:33incidents but part of what U.S. District Judge Robert Lasnick described as a pattern of huge
00:38and unjust profits extracted from desperate consumers. What happened next would force the
00:44e-commerce giant into a legal battle threatening billions in damages. On January 5, 2026, Judge
00:50Lasnick rejected Amazon's motion to dismiss a proposed class action lawsuit alleging pandemic
00:56era price gouging. The Seattle-based federal judge found Amazon's legal arguments unpersuasive,
01:02allowing consumers to proceed with claims that the company exploited vulnerable shoppers during
01:06a public health crisis. The ruling marks a significant setback for Amazon's defense strategy
01:12and opens the company to extensive discovery proceedings that could expose closely guarded
01:17pricing algorithms. Judge Lasnick ruled that plaintiffs plausibly demonstrated Amazon
01:22exploited vulnerable consumers who turned to Amazon as a lifeline for consumer goods and food
01:27items during a public health crisis. The court determined that pandemic shortages, health directives,
01:33and lockdown restrictions left many shoppers with no meaningful choice but to purchase from Amazon
01:38despite allegedly unfair pricing. This legal finding positions Amazon's market dominance during COVID-19
01:45as a factor triggering enhanced consumer protection obligations rather than ordinary marketplace dynamics.
01:52Beyond face masks and baking soda, the lawsuit documents quilted northern toilet paper surging
01:571,044% from $17.48 to $200 during the pandemic emergency. Aleve pain relief tablets increased 233%
02:09as consumers faced medication shortages. These documented price escalations span multiple essential
02:15product categories including food items, cleaning supplies, personal protective equipment, and household
02:20necessities. The systematic nature across diverse product types strengthens allegations of deliberate
02:27profiteering rather than isolated marketplace anomalies. The proposed class includes consumers who bought
02:34emergency goods from January 2020 to October 2022. That long window suggests sustained pricing practices,
02:41not early pandemic confusion, and could greatly increase Amazon's potential damages exposure.
02:47Plaintiffs say Amazon gouged prices in two ways, letting third-party sellers charge illegal prices while
02:53raising prices on its own products. That dual conduct suggests a systemic problem, not just weak oversight
03:00of outside sellers, weakening Amazon's facilitator defense. Attorney Steve Berman said Amazon's own documents
03:06show it knew price gouging harmed consumers and built systems to stop it. Those admissions
03:12contradict Amazon's claim that gouging laws are too vague, creating serious legal risk.
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