Canada’s Federal Court has ruled to allow a proposed class action lawsuit against Amazon to go to arbitration after finding the e-commerce giant entered into binding agreements with buyers.
In Difederico et al. v. Amazon.Com, Inc. et al., Stephanie Difederico brought a proposed class action lawsuit against Amazon, alleging that the company has participated in criminal price-fixing, violating the Competition Act through competetive pricing provisions and a related fair pricing policy.
The case adds to the growing list of challenges to Amazon’s policies regarding third-party sellers, and other price-fixing accusations that have been brought against the retail giant in several jurisdictions, including the EU, India, and the US.
Read More: Amazon Must Face ‘Fair Pricing’ Case Judge Rules
The courts found that the plaintiff, Difederico, had used both Amazon.ca and Amazon.com accounts to purchase products. Amazon.ca’s 2014 and 2022 terms and conditions contained dispute resolution and arbitration clauses, as well as choice-of-law clauses, which are the basis for the Canadian court’s decision.
The Federal Court noted that the Supreme Court of Canada has consistently held that courts should give effect to arbitration agreements absent any legislative intervention. There is also a well-settled policy in Canada that compliance with arbitration agreements should be enforced by the courts to ensure that such agreements are not null, void, inoperative, or incapable of performance.
Read More: DOJ Amazon Marketplace Sellers Plead Guilty To Price Fixing
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