Amazon Faces Lawsuit Over “Fake Sales” on Prime Day What It Means
for Sellers
Picture this: You’re browsing Amazon during Prime Day. You spot a best-selling pair of headphones — advertised at 44% OFF the original list price of $179.95. A timer ticks down, reviews look great, and the deal feels unmissable. You click Add to Cart instantly.
But what if that “original” price was never really $179.95? What if the same product had been selling for $130–$160 for months?
That’s the core claim behind a major class-action lawsuit now filed against Amazon. According to recent reporting by CBS News, consumers allege Amazon artificially inflated list prices during Prime Day to make savings look bigger than they truly were. ClassAction.org highlights multiple examples — including a kids’ tablet where the supposed 40% discount price was actually the same as its normal median price days before the sale.
In short, the lawsuit alleges “fictional list prices” and pressure-driven urgency misled customers into believing they were getting massive savings.
Why does this matter to sellers?
Because trust drives conversions — and regulatory scrutiny affects everyone on the platform.
If these allegations lead to new enforcement measures, sellers may face:
→ Stricter list-price validation
→ More pricing compliance reviews
→ Higher risk of suppressed Buy Box or listings
→ Increased accountability for promotional claims
Prime Day is supposed to be the biggest growth moment of the year. But with legal pressure mounting — and Amazon recently facing multi-billion-dollar penalties over other consumer protection issues — pricing transparency is becoming non-negotiable.
In this blog, we’ll cover:
• What the lawsuit alleges and its latest developments
• How Amazon’s list-price system actually works
• What sellers must do now to stay compliant
• How PDMG helps brands avoid penalties and protect rankings
Let’s break down how this case could reshape deal strategy for every Amazon seller.
Background: What is “List Price” / Reference Price on Amazon?
On Amazon, the “List Price” — also called the reference price or suggested retail price (SRP) — is the original retail value of a product set by the brand, manufacturer, or seller. This number plays a major role in how pricing is presented to customers across the platform.
When a product is offered at a price lower than the List Price, Amazon often displays the List Price as a strike-through above the current selling price. This presentation may include:
• The strikethrough List Price
• The current deal price
• The percentage off or “You Save” badge
This visual pricing strategy is powerful because it makes the savings immediately clear to the shopper. A higher List Price — if valid — means a bigger discount percentage, more urgency, and stronger perceived value. It directly influences clicks, conversions, and the psychological decision to buy now.
Why Amazon Is Tightening Its Rules
With millions of SKUs and dynamic pricing, List Prices must remain accurate and current. If the reference price is inflated, outdated, or not actually used in the market recently, the displayed discount may appear misleading. That’s one of the key issues raised in the recent lawsuit — consumers argue they were shown deals that weren’t really deals.
Amazon has been proactively reviewing seller pricing accuracy. In fact, emails recently sent to sellers (including the one June forwarded) state:
“We’ve noticed that you have not provided List Prices for some of the ASINs you offer; or you have List Prices that may be out-of-date, based on objective information.”
The message is clear
• Amazon monitors missing and suspicious List Prices
• Sellers are responsible for ensuring accuracy
• Incorrect reference prices may trigger compliance reviews
The Compliance Risk
If the List Price does not reflect real and verifiable retail value, the discount represented could:
• Violate Amazon’s pricing policies
• Mislead customers
• Result in deal removal, Buy Box suppression, or listing suppression
• Potentially attract legal scrutiny — as seen in the lawsuit
In short:
List Price isn’t just a marketing tactic — it’s a compliance-sensitive metric. And with increased
attention on “fake sales,” sellers must ensure every reference price is backed by accurate data and
updated regularly.
What the Lawsuit Alleges
In September 2025, a proposed class-action lawsuit was filed in federal court in Washington state against Amazon, alleging that the company marketed misleading discounts during its July 8–11 Prime Day event. Multiple consumer-rights legal groups, including reporting from ClassAction.org and FindLaw, have highlighted the nature and scope of the case. The plaintiffs, consumers from California and Maryland, claim they were influenced into making purchases based on pricing information that was not truthful or supported by actual market history.
Core Allegations in the Complaint
The lawsuit claims that Amazon artificially inflated or relied on inaccurate List Prices to create the appearance of steep discounts on many Prime Day items. These so-called “fictional” reference prices allegedly enabled Amazon to present attractive percentage-off promotions that suggested dramatic savings, driving faster buying decisions under Prime Day’s urgency-driven format.
According to the legal filing, several products displayed List Prices that were significantly higher than what the items had been selling for in the recent retail market. The lawsuit points specifically to the previous 90-day price history, arguing that if a product never sold for the referenced List Price during that period, then the resulting discount was misleading. For consumers, the message was clear: the deal looked too good to miss, when in reality, the sale price was not materially different from the product’s usual transaction value.
Examples Highlighted in the Lawsuit
The complaint outlines product examples to demonstrate the alleged issue:
• A pair of headphones advertised at 44 percent off a List Price of $179.95. Plaintiffs argue the headphones typically sold between $130 and $160 and were rarely, if ever, offered near the $179.95 reference price.
• An 8-inch Android kids’ tablet marketed as roughly 40 percent off a List Price of $119.99. In the 90 days prior to Prime Day, the same item reportedly sold between $50 and $85, often lower than the supposed limited-time deal price shown during the event.
These examples are presented as evidence that Amazon manufactured a false sense of savings by relying on inflated or outdated List Prices instead of genuine, prevailing retail prices.
Legal Grounds and Scope
The suit asserts violations of consumer-protection laws, including the Washington Consumer Protection Act, claiming Amazon engaged in deceptive and unfair business practices. Since the lawsuit is structured as a proposed class action, it seeks to represent millions of U.S. consumers who purchased Prime Day items based on what they believed were legitimate discounts.
If the court certifies the class, the case could have wide implications for both Amazon and third-party sellers who rely on similar pricing structures and promotional tactics.
Why This Matters to the Marketplace
This lawsuit puts significant attention on Amazon’s discounting approach, questioning how price comparisons are created and communicated. While the claims are directed at Amazon, the impact extends to third-party sellers who depend on strike-through pricing to drive competitiveness and visibility. If reference prices are more aggressively regulated or restricted, sellers may face heightened scrutiny, removal of discount displays, and possible compliance actions tied to pricing accuracy.
Ultimately, the case challenges the integrity of one of Amazon’s biggest promotional engines and raises concerns about trust, transparency, and legal compliance across the marketplace.
How This Affects Sellers on Amazon
The lawsuit may be directed at Amazon, but third-party sellers are not insulated from the consequences. On the marketplace, sellers are responsible for the pricing information they provide, including the List Price field. When reference prices are wrong or outdated, the risk does not fall solely on Amazon—individual sellers can face enforcement as well.
Seller-Side Risk and Compliance Pressure
Amazon’s recent Seller Central notices have explicitly flagged issues such as missing List Prices or List Prices that “may be out-of-date based on objective information.” If the system determines that the reference price cannot be validated, negative outcomes may follow, including:
• Suppression of strike-through deals or percentage-off messages.
• Pricing-related policy violations.
• Reduced visibility and potential Buy Box loss.
• Account-level warnings for repeated misuse.
There is also significant reputational pressure. If customers perceive discounts as misleading, negative reviews, reduced repeat purchases, and lower trust in the brand can follow. As regulatory scrutiny increases, sellers may be held accountable for misrepresentation even when the manufacturer originally set the suggested retail price.
Tactical Steps Sellers Should Take
To stay compliant, sellers must approach List Price management more proactively. Key actions include:
• Review the “list_price” attribute in catalog files or in Manage Inventory to ensure prices are current and supported by manufacturer or your own verified MSRP
• Cross-check your historical pricing to confirm the List Price reflects a realistic market value
• Use third-party tools like Keepa or CamelCamelCamel to monitor price history and ensure market-consistent reference prices
• Update or remove List Prices that no longer align with where the product is selling in the marketplace
• Document pricing justification, particularly when you increase List Price, to withstand future audits
Sellers cannot assume that a List Price is acceptable simply because it appears in a feed or on packaging. They must verify it meets Amazon’s internal compliance standards as well.
Potential Opportunity Amid Change
While this situation elevates risk, it also presents a competitive advantage. Transparent pricing practices help sellers build credibility, especially as consumers become more cautious. Even if a lower discount percentage appears on the page, accuracy increases buyer trust and can support stronger long-term performance. Sellers who adapt early may be rewarded as the marketplace environment becomes more regulated and trust-driven.
Latest Developments and What’s New
Recent media coverage, including CBS News and ClassAction.org, describes the July 2025 Prime Day event as involving deals “rife with fake sales.” The lawsuit alleges that Amazon boosted Prime Day performance by displaying misleading discounts built on inflated List Prices or values that were not reflective of the previous 90-day sale history. Reports from platforms like FindLaw point out that these tactics may violate consumer-protection laws intended to ensure price transparency.
Amazon has declined to publicly comment on the lawsuit, according to multiple sources. However, the timing is notable. Only weeks earlier, in September 2025, Amazon agreed to pay $2.5 billion to resolve federal claims related to misleading Prime subscription enrollment and cancellation practices. Under that FTC case, Amazon was required to pay a $1 billion civil penalty—the largest ever recorded for a rule violation of that kind. This adds to broader scrutiny surrounding Amazon’s business practices.
Increased Regulatory Pressure
The new lawsuit challenges one of Amazon’s core promotional strategies—strike-through pricing and measurable savings comparisons. As regulators and courts examine whether discount claims are fair and accurate, the case may:
•Reinforce future pricing guidelines and documentation requirements
•Lead to policy updates inside Seller Central
•Intensify monitoring and automated enforcement mechanisms
•Expand legal exposure beyond Amazon toward third-party sellers who use similar pricing tactics
This is especially critical because reference price accuracy relies heavily on seller-submitted data.
What Sellers Need to Watch
If the lawsuit advances, Amazon may implement tighter qualifications for discount displays, including punitive measures for unverifiable List Prices. That could affect how sellers run promotions during high-volume traffic events such as Prime Day, Cyber Monday, and seasonal sales.
Sellers should continue monitoring the Pricing Health dashboard, suppressed listings notifications, and any new compliance emails. Amazon has historically adjusted its enforcement approach after regulatory actions, so proactive attention is essential.
Marketplace and Consumer Impact
While the case originates in the U.S., global marketplaces often align with regulatory developments in key regions. Sellers operating internationally should assume similar expectations may apply across EU, UK, and other Amazon markets in the future.
As public awareness increases, consumers may become more skeptical of deep discounts, reducing the influence of inflated strike-through prices. For sellers maintaining accurate reference pricing, this shift can strengthen loyalty, repeat buying, and brand integrity.
Practical Checklist for Sellers
To avoid compliance issues and protect your brand from policy violations or legal exposure, sellers must actively manage how List Prices and discounts are represented. The following checklist outlines practical steps to review, correct, and maintain accurate reference pricing data across your catalog.
Seller Pricing Audit Checklist
Pull a complete list of all ASINs you offer and check whether a List Price has been provided for each item.
• Verify historical pricing. Confirm that each product has been sold or listed at or above the List Price within the last 90 days, or according to Amazon’s internal policy standards.
• If you are the brand owner, document the manufacturer’s suggested retail price (MSRP) or your own proposed retail price and retain supplier or manufacturer confirmation as proof.
• Update the List Price attribute in your inventory file or through the “Manage Inventory” section in Seller Central to reflect the correct current data.
• Remove any outdated or unverifiable List Prices. If you cannot substantiate the value, it is safer to delete the figure rather than display an inflated number that may mislead customers.
• Monitor competitor and market pricing trends using tools such as Keepa or CamelCamelCamel to ensure your List Prices remain realistic and defensible.
• Review your marketing materials, including titles and bullet points, to ensure that any “XX% off” or “strike-through” discounts align with accurate List Price data.
• Stay updated with Amazon’s policy changes by checking Seller Central announcements and communications—especially those referencing “reference prices” or “List Price policy enforcement.”
• Consider switching to “Save X%” or “Limited-Time Deal” messaging if your List Price cannot be consistently supported with verifiable data.
• Keep records of all compliance reviews, pricing updates, and supplier confirmations. In the event of an Amazon audit or customer complaint, this documentation can serve as evidence that you have maintained honest and compliant pricing practices.
Proactive Compliance Mindset
For small and medium-sized sellers, these steps may feel demanding. However, maintaining accurate List Prices is no longer optional—it is a growing compliance expectation. Adopting a proactive rather than reactive approach helps protect your business, improves buyer trust, and ensures your offers remain competitive without risking policy violations.
Implications and Takeaways
The conversation around list prices on Amazon highlights an important shift in e-commerce. Discount messaging remains a powerful conversion driver, but when those discounts are tied to inflated or outdated list prices, the risk outweighs the reward. What seems like a strong promotion can quickly create compliance issues, legal exposure, and customer distrust.
The current lawsuit signals growing regulatory focus on how online prices are presented. This pressure may influence Amazon to implement stricter rules, closer monitoring, and more enforcement actions toward sellers whose reference pricing does not meet standards.
For sellers, this moment presents an opportunity to refine pricing strategies. Accurate list prices, documented MSRP verification, and transparent discounts can become a competitive advantage. Sellers who invest early in compliance and honesty will face fewer disruptions if Amazon updates its policies and systems.
The role of Amazon-focused marketers and operators becomes more important in this environment. Translating policy changes and legal updates into practical steps helps sellers stay ahead of risks and protect brand integrity.
Ultimately, the e-commerce landscape is moving from purely maximizing urgency toward building trust. Authentic pricing builds credibility. Sellers who make that shift today position themselves to retain customers long-term, not just during a sale event.
Conclusion
The lawsuit against Amazon over alleged “fake sales” and misleading list prices isn’t just a legal development happening in isolation. It has direct consequences for every seller and brand on the marketplace. The core message is clear: pricing transparency is no longer optional. With regulatory pressure increasing and consumers becoming more aware of discount manipulation, sellers must ensure their pricing practices are rooted in accuracy and truth.
This moment serves as an opportunity. Sellers who proactively review and update their list price data, document their MSRP claims, and build campaigns around genuine savings can strengthen their credibility and protect their business from compliance issues. It’s not simply about showing a bigger discount — it’s about showing a real one.
Taking these steps now will put sellers ahead of potential enforcement changes, reputation challenges, and competitive shifts. Trust is becoming a key differentiator in the marketplace, and those who embrace transparency will be best positioned to grow and retain loyal customers in a tightening regulatory environment.
References / Further Reading
CBS News – Amazon Prime Day is ‘rife with fake sales,’ lawsuit alleges
ClassAction.org – Prime Day lawsuit alleges four-day Amazon event is ‘rife with fake sales’
Business Insider – Amazon settlement with FTC over Prime subscription enrollments
Amazon Seller Central Help Page – Reference price and list price policy
Keepa – Amazon price history tracking
CamelCamelCamel – Price monitoring for Amazon listings
