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COMPLAINT – CLASS ACTION – 1 [Case No. 2:14-cv-00244]
SIRIANNI YOUTZ SPOONEMORE HAMBURGER
999 THIRD AVENUE, SUITE 3650 SEATTLE, WASHINGTON 98104
TEL. (206) 223-0303 FAX (206) 223-0246
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UNITED STATES DISTRICT COURT WESTERN DISTRICT OF WASHINGTON
AT SEATTLE
DR. A. CEMAL EKIN, individually and on behalf of similarly
situated individuals,
Plaintiff,
v.
AMAZON SERVICES LLC, a Nevada limited liability company,
Defendant.
NO. 2:14-cv-00244 COMPLAINT – CLASS ACTION JURY DEMAND
I. PARTIES
1.1 Plaintiff Ekin. A. Cemal Ekin, Ph.D. (“Dr. Ekin” or
“Plaintiff”) is a
resident of the state of Rhode Island. Dr. Ekin, individually
and on behalf of a class of
persons and/or entities similarly situated, brings this action
for damages and such
other relief as may be available against Defendant.
1.2 Defendant Amazon. Amazon Services LLC (“Amazon” or
“Defendant”)
is a Nevada limited liability company headquartered in Seattle,
Washington. It, and
Amazon.com and affiliates, form the world’s largest online
retailer.
II. JURISDICTION AND VENUE
2.1 Jurisdiction. This Court has subject matter jurisdiction by
virtue of
diversity of citizenship. 28 U.S.C. 1332. Plaintiff is a citizen
and resident of Rhode
Island. Defendant is a Nevada limited liability company
headquartered in the state of
Case 2:14-cv-00244 Document 1 Filed 02/19/14 Page 1 of 9
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COMPLAINT – CLASS ACTION – 2 [Case No. 2:14-cv-00244]
SIRIANNI YOUTZ SPOONEMORE HAMBURGER
999 THIRD AVENUE, SUITE 3650 SEATTLE, WASHINGTON 98104
TEL. (206) 223-0303 FAX (206) 223-0246
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Washington. It is wholly owned by Amazon.com, Inc., a Delaware
corporation
headquartered in the state of Washington. The amount in
controversy exceeds $75,000
exclusive of interest and costs.
2.2 Venue. Under the Terms and Conditions of Plaintiff’s and
each proposed
class member’s Amazon Prime Program membership agreement, which
incorporates
Amazon’s Conditions of Use agreement:
Any dispute … in which the aggregate total claim for relief
sought on behalf of one or more parties exceeds $7,500 shall be
adjudicated in any state or federal court in King County,
Washington…. [That court shall have] exclusive jurisdiction and
venue.
III. FACTUAL ALLEGATIONS
3.1 The Amazon Prime Program. Throughout the class period,
purchasers on
Amazon.com could join the Amazon Prime Program (“Prime Program”)
by paying
Amazon a $79 annual membership fee. In return, Amazon agreed
that “Prime
Program Members” would receive free shipping for items: (a)
purchased from third-
party vendors that participate in the Prime Program; and (b)
designated on the relevant
website as . Until February 22, 2011 (the end of the class
period), free shipping
on items designated as Prime-Eligible was the exclusive benefit
of Prime Program
membership. The term “Prime-Eligible” refers to all goods for
sale on the relevant
website that are designated .
3.2 Amazon’s Agreement that Shipping Charges Would Not Be
Included in
Prices of Items Offered as Prime Eligible. In return for the
annual $79 Prime Program
membership fee, Amazon promised and agreed with Prime Program
Members: (a) to
provide free shipping on any and all Prime Program Member
purchases of Prime-
Eligible items; and (b) that shipping charges would not be
included in the prices of
items offered for sale as Prime Eligible.
Case 2:14-cv-00244 Document 1 Filed 02/19/14 Page 2 of 9
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COMPLAINT – CLASS ACTION – 3 [Case No. 2:14-cv-00244]
SIRIANNI YOUTZ SPOONEMORE HAMBURGER
999 THIRD AVENUE, SUITE 3650 SEATTLE, WASHINGTON 98104
TEL. (206) 223-0303 FAX (206) 223-0246
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3.3 Third-Party Vendor Participants. Fulfillment by Amazon
(“FBA”) is a
service offered by Amazon to third-party vendors. Under FBA, the
third-party vendor
pays Amazon certain fees. In return, Amazon warehouses goods,
fills orders, boxes
and ships, provides customer service and handles returns, and
provides payment
collection on third-party-owned goods sold on Amazon.com and
other websites.
Third-party vendors who participate in the FBA are referred to
as “FBA Vendors.”
Amazon allows and encourages FBA Vendors to list items for sale
as Prime-Eligible,
thus promising that the items would be sold without charging for
shipping.
3.4 Amazon Induces FBA Vendors to Mark Up the Prices of
Prime-Eligible
Items to Include Shipping Charges. During the class period: (a)
Amazon advised FBA
Vendors to include the amount they would have charged for
shipping in their item
prices in order to maximize total revenue and profit margins;
and (b) FBA Vendors
increased their prices to Prime Program Members by the amount
they charged others
for shipping without revealing that a portion of those prices
was for shipping fees.
Amazon disguised this price increase by giving priority to FBA
Vendors, showing their
items first in the results of a Prime Member’s product
search.
3.5 Raising Prime-Eligible Item Prices by Shipping Charges
Increases
Amazon’s FBA Fees and Allows Amazon to Capture its Shipping
Costs. Amazon
charges FBA Vendors a “referral fee,” which is a percentage of
the price of the Prime-
Eligible item. Increasing an FBA item price by an amount equal
to normal shipping
charges—as recommended by Amazon—results in (a) a higher
referral fee paid by FBA
Vendors to Amazon; and (b) the direct and immediate recovery by
Amazon, in whole
or in part, of its cost of “free” shipping, contrary to its
contractual obligations to Prime
Program Members, and contrary to FTC guidelines, which read:
Case 2:14-cv-00244 Document 1 Filed 02/19/14 Page 3 of 9
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COMPLAINT – CLASS ACTION – 4 [Case No. 2:14-cv-00244]
SIRIANNI YOUTZ SPOONEMORE HAMBURGER
999 THIRD AVENUE, SUITE 3650 SEATTLE, WASHINGTON 98104
TEL. (206) 223-0303 FAX (206) 223-0246
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(b) Meaning of “Free.”
(1) (W)hen the purchaser is told that an article is “Free” to
him if another article is purchased, the word “Free” indicates that
he is paying nothing for that article and no more than the regular
price for the other. Thus, a purchaser has a right to believe that
the merchant will not directly and immediately recover, in whole or
in part, the cost of the free merchandise or service by marking up
the price of the article which must be purchased….
16 C.F.R. § 251.1(b)(1) (underlining added).
3.6 Dr. Ekin’s Prime Program Membership. From December 2008
through
December 2010, Dr. Ekin was an Amazon Prime Program Member and
paid the annual
membership fee of $79 to Amazon. In return for the $79 annual
membership fee,
Amazon promised Dr. Ekin, like all Prime Program Members, free
shipping on his
Prime-Eligible purchases, and that the prices of Prime-Eligible
items would not be
increased by the inclusion of shipping charges.
3.7 Amazon’s Breach of Obligation to Dr. Ekin and Other Prime
Program
Members. Because Amazon induced FBA Vendors to include shipping
charges in the
prices of FBA Prime-Eligible items, Dr. Ekin and other Prime
Program Members did
not receive the promised benefits. Instead, Amazon’s FBA pricing
program resulted in
Prime-Eligible items being routinely offered for sale through
FBA Vendors at prices
inflated by shipping charges as described above, despite
Amazon’s free shipping
promise.
3.8 Resulting Harm to Dr. Ekin and Other Prime Program
Members.
Dr. Ekin and other Prime Program Members were harmed and
deceived by Amazon’s
activity because they paid the $79 annual Prime Program
membership fee solely for the
benefit of free shipping. However, the prices of FBA items
offered to them as Prime
Program Members were routinely inflated to include shipping
charges.
Case 2:14-cv-00244 Document 1 Filed 02/19/14 Page 4 of 9
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COMPLAINT – CLASS ACTION – 5 [Case No. 2:14-cv-00244]
SIRIANNI YOUTZ SPOONEMORE HAMBURGER
999 THIRD AVENUE, SUITE 3650 SEATTLE, WASHINGTON 98104
TEL. (206) 223-0303 FAX (206) 223-0246
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IV. APPLICABLE LAW
4.1 Washington Law. The applicable Amazon-prepared agreements
with
Prime Program Members provide that Washington law applies to any
and all claims of
Prime Program Members, including Plaintiff and each proposed
class member.
V. CLASS ACTION ALLEGATIONS
5.1 The Class. Plaintiff brings this suit as a class action on
behalf of himself
and all other United States residents similarly situated as
members of a proposed
plaintiff class (“Class”) pursuant to Rule 23(b)(3). The Class
is defined as follows:
All persons and entities residing in the United States who
became Amazon Prime members at any time from October 24, 2007 until
February 22, 2011, and paid one or more $79 annual Prime membership
fees during that Class period.
Excluded from this Class are: (a) defendant, any entity in which
defendant has a controlling interest or which has a controlling
interest in defendant; (b) defendant’s employees, agents,
predecessors, successors or assigns; (c) the judge and staff to
whom this case is now or hereafter assigned, and any member of the
judge’s immediate family; and (d) plaintiff’s counsel and their
immediate families.
5.2 Numerosity. Upon information and belief, the Class consists
of well over
one million members and is so numerous that individual joinder
is impracticable.
5.3 Commonality and Predominance. Common questions of law and
fact
predominate over any questions affecting only individual Class
members. Some of the
common legal and factual questions include: (a) whether shipping
charges were
routinely included in the prices of FBA Prime-Eligible items;
(b) whether the routine
inclusion of shipping charges in the prices of FBA
Prime-Eligible items constitutes a
breach of Amazon’s promise to Prime Program Members that
shipping charges would
not be included in the prices of items offered for sale as FBA
Prime-Eligible;
(c) whether Washington law applies to the claims of all Class
members; and
Case 2:14-cv-00244 Document 1 Filed 02/19/14 Page 5 of 9
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COMPLAINT – CLASS ACTION – 6 [Case No. 2:14-cv-00244]
SIRIANNI YOUTZ SPOONEMORE HAMBURGER
999 THIRD AVENUE, SUITE 3650 SEATTLE, WASHINGTON 98104
TEL. (206) 223-0303 FAX (206) 223-0246
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(d) whether Amazon’s activity was unfair and deceptive in trade
or commerce,
adversely impacting the public interest.
5.4 Typicality. For the following non-inclusive reasons,
Plaintiff’s claims are
typical of those of the Class members. (a) Plaintiff, like all
Class members, became an
Amazon Prime Program Member during the period that the Terms and
Conditions
governing his Amazon Prime Program membership provided that: (i)
disputes
involving an “aggregate total claim for relief sought on behalf
of one or more parties
exceeds $7,500 shall be adjudicated in any state or federal
court in King County,
Washington …”; and (ii) “the laws of the state of Washington …
will govern … any
dispute of any sort that might arise between you and Amazon…”;
and (b) Amazon
continually breached its promise to Plaintiff and Prime Program
Members that
shipping charges would not be included in the prices of items
offered for sale as FBA
Prime-Eligible. Shipping charges were, throughout the Class
period, routinely
included in the prices of FBA Prime-Eligible items.
5.5 Adequacy. Plaintiff will fairly and adequately represent the
Class
because his interests are not adverse to those of the Class and
he suffered harm similar
to that suffered by the Class he seeks to represent. He has
retained experienced
counsel competent in class action litigation. The interests of
the Class will be fairly and
adequately protected by Plaintiff and his counsel. Neither
Plaintiff nor undersigned
counsel has any interest that may inhibit or obstruct the
vigorous pursuit of this action.
5.6 Class Form Superior to All Other. This class action is
superior to the
other available means for the fair and efficient resolution of
the claims of Plaintiff and
the proposed Class members. The relief sought per individual
member of the Class is
small relative to the burden and expense of prosecuting claims
against Amazon. It
would be virtually impossible for the Class members to seek
redress on an individual
basis. Given the similar nature of Class members’ claims and the
contractual provision
Case 2:14-cv-00244 Document 1 Filed 02/19/14 Page 6 of 9
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COMPLAINT – CLASS ACTION – 7 [Case No. 2:14-cv-00244]
SIRIANNI YOUTZ SPOONEMORE HAMBURGER
999 THIRD AVENUE, SUITE 3650 SEATTLE, WASHINGTON 98104
TEL. (206) 223-0303 FAX (206) 223-0246
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designating the laws of the State of Washington as governing, a
nationwide class could
be managed by this court. A significant economy of scale exists
in concentrating the
litigation in this forum.
5.7 Individual Prosecution Unlikely and Unreasonable. Plaintiff
and his
counsel are not aware of any interest that members of the Class
would have in
individually controlling the prosecution of separate actions,
especially given: (a) the
relatively small size of each individual claim; and (b) the
cost, expense and difficulty of
litigating against one of the largest companies in the United
States. Plaintiff and his
counsel are not aware of any actions already commenced on behalf
of members of the
Class alleging similar claims or seeking similar relief.
VI. CAUSE OF ACTION: BREACH OF CONTRACT
6.1 Incorporation. The preceding paragraphs are re-alleged
and
incorporated herein.
6.2 Amazon’s Breach of Its Contractual Obligation to Prime
Program
Members. The routine inclusion and encouragement of inclusion of
shipping charges
in the prices of FBA Prime-Eligible items constitutes a breach
of Amazon’s promise to
Prime Program Members that shipping charges would not be
included in the prices of
items offered for sale as FBA Prime-Eligible, and violates
Amazon’s agreement that
shipping would be “free.”
6.3 Loss and Causation. As a direct result of Amazon’s breach,
Plaintiff and
the Class members were harmed by Amazon’s conduct, and Amazon
was unjustly
benefited at the expense and to the detriment of Plaintiff and
the Class members.
VII. SECOND CAUSE OF ACTION: VIOLATIONS OF WASHINGTON CONSUMER
PROTECTION ACT
7.1 Incorporation. The preceding paragraphs are re-alleged
and
incorporated herein.
Case 2:14-cv-00244 Document 1 Filed 02/19/14 Page 7 of 9
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COMPLAINT – CLASS ACTION – 8 [Case No. 2:14-cv-00244]
SIRIANNI YOUTZ SPOONEMORE HAMBURGER
999 THIRD AVENUE, SUITE 3650 SEATTLE, WASHINGTON 98104
TEL. (206) 223-0303 FAX (206) 223-0246
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7.2 Washington Consumer Protection Act Violations.
7.2.1 Amazon had a statutory duty to refrain from unfair or
deceptive
acts or practices in trade and commerce.
7.2.2 Amazon’s conduct, described above, was unfair and
deceptive in
trade and commerce.
7.2.3 Amazon’s unfair and deceptive conduct in trade and
commerce,
described above, impacted the public interest, and Plaintiff and
the Class he seeks to
represent were proximately harmed as a result.
7.3 Consumer Protection Act Relief. The Washington Consumer
Protection
Act entitles Plaintiff and Class members to actual damages and
other relief, such as
attorneys’ fees, costs and treble damages, as provided for in
RCW 19.86.
VIII. RELIEF REQUESTED
Plaintiff requests the following relief:
8.1 Class Certification. Certification of the action as a class
action and
appointment of Plaintiff as Class representative and his counsel
of record as Class
counsel;
8.2 Damages. An award of actual/compensatory damages in an
amount to
be proven, and consisting of, among other things, a refund of
all annual Prime Program
membership fees paid during the Class period;
8.3 CPA Damages. Treble damages as provided under the
Washington
Consumer Protection Act;
8.4 Attorneys’ Fees and Costs. The costs of bringing this suit,
and reasonable
attorneys’ fees and costs for prosecuting it;
8.5 Interest. Pre- and post-judgment interest on all amounts as
permitted by
law; and
Case 2:14-cv-00244 Document 1 Filed 02/19/14 Page 8 of 9
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COMPLAINT – CLASS ACTION – 9 [Case No. 2:14-cv-00244]
SIRIANNI YOUTZ SPOONEMORE HAMBURGER
999 THIRD AVENUE, SUITE 3650 SEATTLE, WASHINGTON 98104
TEL. (206) 223-0303 FAX (206) 223-0246
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8.6 Other Relief. All further relief, of any type or nature,
that this Court
determines is just, equitable or necessary.
IX. JURY DEMAND
9.1 Plaintiff respectfully demands a trial by jury.
DATED: February 19, 2014.
SIRIANNI YOUTZ SPOONEMORE HAMBURGER
By s/ Stephen J. Sirianni By s/ Chris R. Youtz By s/ Richard E.
Spoonemore By s/ Eleanor Hamburger By s/ Charles D. Sirianni
Stephen J. Sirianni (WSBA #6957) Chris R. Youtz (WSBA #7786)
Richard E. Spoonemore (WSBA #21833) Eleanor Hamburger (WSBA #
26478) Charles D. Sirianni (WSBA #40421)
999 Third Avenue, Suite 3650 Seattle, WA 98104 Tel. (206)
223-0303 Fax (206) 223-0246 [email protected] [email protected]
[email protected] [email protected] [email protected]
Co-counsel for Plaintiff
—and—
DAVID M. SIMMONDS
By s/ David M. Simmonds David M. Simmonds (WSBA # 6994)
c/o SIRIANNI YOUTZ SPOONEMORE HAMBURGER Co-counsel for
Plaintiff
Case 2:14-cv-00244 Document 1 Filed 02/19/14 Page 9 of 9
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]
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CIVIL COVER SHEET
(SEE INSTRUCTIONS ON NEXT PAGE OF THIS FORM.)
I. (a) PLAINTIFFS DEFENDANTS
(b)(EXCEPT IN U.S. PLAINTIFF CASES) (IN U.S. PLAINTIFF CASES
ONLY)
(c) (Firm Name, Address, and Telephone Number) (If Known)
II. BASIS OF JURISDICTION (Place an “X” in One Box Only) III.
CITIZENSHIP OF PRINCIPAL PARTIES (Place an “X” in One Box for
Plaintiff(For Diversity Cases Only) and One Box for Defendant)
PTF DEF PTF DEF(U.S. Government Not a Party) or
and(Indicate Citizenship of Parties in Item III)
IV. NATURE OF SUIT (Place an “X” in One Box Only)CONTRACT TORTS
FORFEITURE/PENALTY BANKRUPTCY OTHER STATUTES
PERSONAL INJURY PERSONAL INJURY
PROPERTY RIGHTS
LABOR SOCIAL SECURITY PERSONAL PROPERTY
REAL PROPERTY CIVIL RIGHTS PRISONER PETITIONS FEDERAL TAX
SUITSHabeas Corpus:
IMMIGRATIONOther:
V. ORIGIN (Place an “X” in One Box Only)
(specify)
VI. CAUSE OF ACTION(Do not cite jurisdictional statutes unless
diversity)
VII. REQUESTED IN COMPLAINT:
CLASS ACTION DEMAND $JURY DEMAND:
VIII. RELATED CASE(S) IF ANY (See instructions):
FOR OFFICE USE ONLY
Case 2:14-cv-00244 Document 1-1 Filed 02/19/14 Page 1 of 2
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INSTRUCTIONS FOR ATTORNEYS COMPLETING CIVIL COVER SHEET FORM JS
44
I.(a) Plaintiffs-Defendants.
(b) County of Residence.
(c) Attorneys.
II. Jurisdiction.
. ; NOTE: federal question actions take precedence over
diversity cases.
III. Residence (citizenship) of Principal Parties.
IV. Nature of Suit.
V. Origin.
VI. Cause of Action. Do not cite jurisdictional statutes unless
diversity.
VII. Requested in Complaint.
VIII. Related Cases.
Date and Attorney Signature.
Case 2:14-cv-00244 Document 1-1 Filed 02/19/14 Page 2 of 2
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United States District Court for the
Western District of Washington
Civil Action No.
Defendant
Plaintiff
SUMMONS IN A CIVIL ACTION
A lawsuit has been filed against you.
If you fail to respond, judgment by default will be entered
against you for the relief demanded in the complaint.
You also must file your answer or motion with the court.
CLERK OF COURT
Date:Signature of Clerk or Deputy Clerk
To: (Defendant's name and address)
v.
AO440 - WAWD (Revised 10/11) Summons in a Civil Action
) ) ) ) ) ) ) ) ) ) ) )
Within days after service of this summons on you (not counting
the day you received it) - or days if you
are the United States or a United States agency, or an officer
or employee of the United States described in Fed. R. Civ.
P. 12 (a)(2) or (3) - you must serve on the plaintiff an answer
to the attached complaint or a motion under Rule 12 of the
Federal
Rules of Civil Procedure. The answer or motion must be served on
the plaintiff or plaintiff's attorney, whose name and address
is:
Case 2:14-cv-00244 Document 1-2 Filed 02/19/14 Page 1 of 2
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AO440WAWD (Revised 10/11) Summons in a Civil Action (Page 2)
Additional information regarding attempted service, etc.
PROOF OF SERVICE
This section should not be filed with the court unless required
by Fed.. R. Civ. P. 4(1)
This summons for (name of individual and title, if any)
was received by me on (date)
I personally served the summons and complaint on the individual
at (place)
I left the summons and complaint at the individual's residence
or usual place of abode with (name)
I served the summons and complaint on (name of individual)
I returned the summons unexecuted because
Other (specify)
on (date)
; or
, a person of suitable age and discretion who resides there,
on (date) , and mailed a copy to the individual's last known
address; or
on (date) ; or
My fees are $ for travel and $ for services, for a total of $
.
.
I declare under penalty of perjury that this information is
true.
Date:
Server's signature
Printed name and title
Server's address
; or
who is designated by law to accept service of process on behalf
of (name of organization)
Case 2:14-cv-00244 Document 1-2 Filed 02/19/14 Page 2 of 2
Plaintiff: DR. A. CEMAL EKIN,individually and on behalf of
similarly situated individualsDate:
02/19/2014b_County_of_Residence_of: Kent County, Rhode
IslandFirmName: Sirianni Youtz Spoonemore Hamburger999 Third
Avenue, Suite 3650Seattle, WA 98104Basis of Jurisdiction:
4.DiversityNature of Suit: 190CauseofAction: 28 U.S.C. 1332Brief
Description: Class action alleging breach of consumer contract
(seeking in excess of $75,000 exclusive of interest and
costs)CHECK_IF_THIS_IS_A_CLASS: 1Demand: JUDGE: Sig: Stephen J.
Sirianni (WSBA #6957)Defendant: AMAZON SERVICES LLC, a Nevada
limited liability companyCounty_of_Residence_of_Fi: Attorneys: 7:
8: 11: 112: 15: 16: 9: 10: 113: 14: 17: 18:
CHECK_YES_only_if_demand1: YesDOCKET_NUMBER: