Eleventh Circuit Court of Appeals
Marquez v. Amazon.com, Inc.
Eleventh Circuit Court of Appeals
6/7/23, Judge Branch
Topics: Summary Judgment Standard
In this 25-page opinion, the Eleventh Circuit shot down a class action on behalf of Amazon Prime members against Amazon.com. The theory of the case is that one of the benefits of annual “Amazon Prime” membership is “Rapid Delivery,” which is set out on the Amazon.com website. The most common form is 2-day shipping.
During the COVID-19 pandemic, Amazon—without notice or warning to subscribers— suspended Rapid Delivery while still charging full price for membership. The company explained that it did so in order to prioritize certain important shipments over others.
The district court granted Amazon’s motion to dismiss for failure to state a claim. The Eleventh Circuit disagreed with the trial court that there was no duty to provide Rapid Delivery under the contract, but the court looked to the Terms & Conditions, where Amazon reserved to itself the authority to add or subtract from the list of Prime Membership benefits, and that included the right to “limit” Rapid Delivery.” The court also held that Amazon’s significant discretionary authority over Rapid Delivery did not render the contract unconscionable. First, the terms and conditions stated: “Amazon may choose . . . to add or remove Prime membership benefits.” Second, the Conditions of Use reiterated that “AMAZON SERVICES . . . ARE PROVIDED BY AMAZON ON AN ‘AS IS’ AND ‘AS AVAILABLE’ BASIS.” AFFIRMED.
https://media.ca11.uscourts.gov/opinions/pub/files/202114317.pdf
Terry P. Roberts
Terry@YourChampions.com
Director of Appellate Practice Fischer Redavid PLLC
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