Deceptive Prices at Amazon: The More You Look the Less You See

2. Deceptive acts or practices under PUTPCPL

541. Plaintiff Commonwealth of Pennsylvania repeats and re-alleges and incorporates by reference each and every paragraph and allegation of the Complaint as if fully set forth herein.

542. Amazon deceptively misrepresented to the Commonwealth of Pennsylvania and consumers that Amazon’s pricing in the online superstore market and the market for online marketplace services was competitive and fair.

543. Amazon deceptively concealed from, or otherwise misled, the Commonwealth of Pennsylvania and consumers as to the actual characteristics of the marketplace being other than competitive and fair.

544. Regardless of the nature or quality of Amazon’s aforementioned acts or practices on the competitive process or competition, Amazon’s conduct has had the tendency or capacity to deceive.

545. Amazon’s deceptive conduct has resulted in the Commonwealth and consumers being substantially injured by paying more for products than they otherwise would have in a free, open, fair, and competitive market.

546. Amazon’s deceptive misrepresentations and failure to disclose material facts have had the following effects: (1) competition in the online superstore market and the market for online marketplace services has been restrained, suppressed and eliminated throughout Pennsylvania; (2) prices for products in the online superstore market and the market for online marketplace services prices have been raised, maintained and stabilized at artificially-high levels throughout Pennsylvania; (3) Commonwealth of Pennsylvania and consumers have been deprived of free and open markets; and (4) Commonwealth of Pennsylvania and consumers have paid supra-competitive, artificially inflated prices for products in the online superstore market and the market for online marketplace services.

547. Amazon’s impairment of choice and the competitive process has caused the Commonwealth of Pennsylvania and consumers to suffer and to continue to suffer loss of money by means of Amazon’s use or employment of unfair methods of competition and/or unfair acts or practices as set forth above.

548. Amazon’s conduct more fully described herein is unlawful pursuant to 73 P. S. § 201-3.

549. The aforesaid methods, acts or practices constitute deceptive acts or practices within their meaning under Section 2 (4) of the PUTPCPL, including, but not limited to:

(a) “Representing that goods or services have sponsorship, approval, characteristics, ingredients, uses, benefits or quantities that they do not have or that a person has a sponsorship, approval, status, affiliation or connection that he does not have” in violation of 73 P.S. § 201-2(4)(v);

(b) “Representing that goods or services are of a particular standard, quality or grade, or that goods are of a particular style or model, if they are of another” in violation of 73 P.S. § 201-2(4)(vii);

(c) “Engaging in any other fraudulent or deceptive conduct which creates a likelihood of confusion or of misunderstanding” in violation of 73 P.S. § 201- 2(4)(xxi).

550. The above-described conduct created the likelihood of confusion and misunderstanding and exploited the deception and lack of disclosure as to the actual characteristics of the marketplace to the Commonwealth of Pennsylvania and consumers seeking to exercise a meaningful choice in markets expected to be free, open, fair, and competitive and thus constitutes a deceptive act or practice.

551. The Commonwealth seeks entry of a permanent injunction restraining Amazon’s unlawful conduct and mandating corrective measures pursuant to 73 P. S. § 201-4.

552. The Commonwealth also requests that the Court direct Amazon to restore to the Commonwealth on behalf of all victims the ill-gotten gains acquired from their inflated pricing during the period of time Amazon’s unlawful conduct took place, pursuant to 73 P. S. § 201-4.1.