On January 5, 2026, U.S. District Judge Robert Lasnik denied Amazon.com’s motion to dismiss a consumer class‑action lawsuit that accuses the e‑commerce giant of price‑gouging during the COVID‑19 pandemic. The court found Amazon’s arguments “unpersuasive,” holding that shortages, public‑health restrictions, and a shift to online shopping left consumers with “no meaningful choice” but to purchase from Amazon at the alleged prices, allowing the case to proceed to trial.
The lawsuit, filed on April 21, 2020, targets consumers who paid for emergency goods—including food items, personal protective equipment, and household supplies—between January 31, 2020, and October 20, 2022. Plaintiffs allege that Amazon failed to prevent third‑party sellers on its platform from charging excessive prices and that the company itself inflated prices on its own inventory during the pandemic’s peak demand periods.
Internal Amazon documents, now in the public record, indicate that the company was aware of the price‑gouging allegations and had policies in place to monitor seller pricing. In December 2025, Amazon was also accused of destroying pricing‑related records dating back to April 2020, prompting a motion for sanctions. The court’s decision to allow the lawsuit to proceed underscores the seriousness of these allegations and the potential for further litigation.
The complaint cites several dramatic price hikes, including a 1,044% increase for toilet paper, a 1,200% surge for hand sanitizer, and a 1,500% jump for face masks. These examples illustrate the scale of the alleged gouging and provide concrete evidence for the plaintiffs’ claims that Amazon’s platform enabled sellers to exploit pandemic‑era shortages.
From a business perspective, the ruling signals heightened regulatory scrutiny and reputational risk for Amazon. The company may need to strengthen its seller‑monitoring systems, revise its pricing policies, and prepare for potential financial penalties if the case is successful. The decision also raises the possibility of additional lawsuits and could prompt investors to reassess Amazon’s risk profile in the e‑commerce and marketplace segments.
While the court has not yet imposed a monetary judgment, the lawsuit seeks compensation for the alleged overcharges, which could amount to billions of dollars if the plaintiffs prevail. Amazon’s legal team has not yet issued a formal statement, but the denial of the motion to dismiss is likely to prompt a more aggressive defense strategy and could influence future litigation tactics in similar consumer‑protection cases.
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