Did you know Amazon recently terminated the free Whole Foods Delivery services on prime in September? Amazon acquired Whole Foods in 2017 and, in 2018, introduced a free two-hour delivery service for orders over $ 35 for Prime subscribers.
Analysts then embraced these moves since they saw them as an opportunity for Amazon to thrive amid competition. The recent activity to terminate the service and add a $99 .95 service fee was met by a pair of class-action lawsuits demanding refunds for thousands of subscribers.
An Overview of the Class Action Suits Filed Against Amazon One
The first suit was in May, while the second one was in June. As you will find out, both class action suits shed light on the fact that customers felt duped. Read on.
1. May Class-Action Suit
It was filed in a Washington court. The main allegations in this class suit are that.
- Amazon engages in unfair business practices.
- Amazon neither reduced the subscription cost nor refunded their customers after terminating the service.
- Customers did not receive their membership bargain.
2. June Class Action Suit
The second suit happened in Washington, still in the same court where the accusation is that:
- Amazon misinformed its customers.
- The company wasn’t clear about their “Free Delivery” and “Free 2-Hour Grocery Delivery” Services.
- The entity concealed certain product fees only to reveal them in the last stages of the purchase process, which allegedly misled customers (drip ricing).
In this second suit, the issue is that Amazon does not reveal a $9.95 service fee, surprising unsuspecting customers when it’s time to pay.
After introducing the free Whole Foods delivery service, the prices for an annual Amazon subscription increased from $99 to $119. Later, Amazon revealed a $9.95 service fee, which caused an uproar.
Customers allege that the $119 Prime subscription fee included the service fee. Amazon recently increased the subscription fee from 119 to $139, affecting current Prime subscribers and the second class-action suit.
Through all this, Amazon has remained quiet regarding the suit. Other entities might have to look at how they serve their customers after referring to these accusations. Also, it is an opportunity for customers to stay vigilant of the services they pay for.