The British Independent Retailers Association (Bira) is initiating legal action against Amazon, seeking £1bn in damages on behalf of independent retailers.
- Bira accuses Amazon of utilizing retailers’ data for its own benefit, impacting sales revenue adversely.
- The legal claim is represented as the largest collective action under the Competition Act 1998.
- Since 2015, Bira claims Amazon’s practices have diverted £1.1bn in sales from UK retailers, with interest included.
- Bira is confident in the Competition Appeal Tribunal’s consideration of the claim.
The British Independent Retailers Association (Bira) has commenced a significant legal battle against Amazon, claiming damages worth £1bn on behalf of independent retailers. This move is described as a collective action under the Competition Act 1998, representing 35,000 independent retailers across the UK. The association asserts that Amazon misused retailers’ data to their own advantage, leading to a substantial redirection of profits from these smaller entities to Amazon itself.
According to Bira, the alleged misuse of data has been occurring covertly since October 2015. The organization notes that while many retailers were aware of Amazon’s considerable 30% commission fees, they were not informed about the potential risks of their business data being exploited to siphon sales. Bira estimates that this misuse has caused a financial impact totaling £1.1bn, including interest.
Andrew Goodacre, CEO of Bira, has been vocal about the association’s determination to seek justice for independent retailers. He stated, ‘While the retailers knew about the large [30%] commissions charged by Amazon, they did not know about the added risk of their trading data being used by Amazon to take sales away from them.’ Goodacre expressed confidence in the role of the Competition Appeal Tribunal (CAT) in authorizing the progression of the claim, emphasizing the need to present the case robustly on behalf of UK retailers.
Supporting Bira in this legal endeavor is Boris Bronfentrinker, a partner at the international law firm Willkie Farr & Gallagher. Bronfentrinker criticized Amazon’s strategy of becoming essential for retailers and then exploiting its position by compromising confidential information to favor its own operations. He remarked on the hesitancy of individual retailers to challenge Amazon’s practices, thus highlighting Bira’s pivotal role as a representative body willing to confront the ecommerce giant.
The lawsuit underlines pressing concerns about data privacy and competitive practices within the ecommerce sector. By taking proactive legal action, Bira aims to protect and potentially restore the rightful earnings of thousands of retailers who have suffered due to Amazon’s alleged unfair practices.
Bira’s legal action against Amazon marks a critical step towards addressing data misuse and safeguarding independent retailers’ interests.
