Amazon's 'Improperly Retained' Shipping Fees May Approach $15M Yearly, Says Plaintiff
Despite its promise of “Guaranteed Delivery,” Amazon sometimes fails to deliver products by the date or time promised, and a refund promised by the guarantee “is not always provided,” alleges a class action (docket 2:23-cv-01529) notice of removal Wednesday from State of Washington Superior Court for King County to U.S. District Court for Western Washington in Seattle.
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Plaintiff Tonny Storey, a resident of Westfield, Indiana, bought a Stash Tea sampler on Amazon March 27 for $19.99, said the complaint. He was offered the option of paying $2.99 for a guarantee to receive the product between designated hours the following day, alleged the complaint, which was originally filed Sept. 15. Storey accepted the offer and was charged the additional shipping fee, bringing his total order price to $22.98, the complaint said. Terms presented to Storey, in which he agreed to pay $2.99 for “rush shipping” between 7 a.m. and 11 a.m. the following day, met the requirements for refund of a shipping fee under the guaranteed delivery terms and conditions, the complaint said.
An Amazon tracking report later that evening said a “carrier delay has occurred," and the item wasn’t delivered until after the guaranteed delivery period – at 12:57 p.m. -- the next day, it said. Though Amazon acknowledged the delayed delivery and “promised a refund,” Storey never received the shipping fees either to his Amazon account or credit card account, the complaint said. Amazon “breached its promise” to Storey to deliver the product by the guaranteed time, and it “breached its promise in its terms and conditions” to issue a refund to when the guaranteed delivery wasn’t provided, it said.
Amazon makes over 1.6 million deliveries per day, and even if only 1% of those shipments involve unmet guaranteed deliveries “at the low tier of $2.99, for which no refund was provided,” Amazon has “improperly retained” nearly $15 million annually in shipping fees, the complaint said.
Amazon should be required to honor its “contractual promises” to customers, the complaint said. That means enforcing the company’s “broken delivery promises to paying customers with an award of damages,” based on its records of transactions and deliveries, it said. Storey claims breach of contract, unjust enrichment and violation of the Washington Consumer Protection Act. He seeks awards of damages for him and the class; restitution to remedy Amazon’s unjust enrichment at plaintiff's and class members’ expense; treble damages under the Washington Consumer Protection Act; and attorneys’ fees and expenses. Amazon didn't comment.