Amazon Fined $1 Million for Tricking Consumers with Misleading Pricing
Following a two-year investigation, Amazon has been fined $1 million for misleading pricing practices.
Canada’s Competition Bureau conducted an investigation from May 2014 through May 2016 that centered on Amazon’s practice of displaying “list prices,” or manufacturers’ suggested retail prices—the infamous MSRP. The enforcement agency decided the practice fools consumers into believing they are getting a deal, when in fact no one is paying the alleged full price for said item.
“The Bureau’s investigation concluded that these claims created the impression that prices for items offered on Amazon.ca were lower than prevailing market prices,” the Bureau said in a statement.
“The Bureau determined that Amazon relied on its suppliers to provide list prices without verifying that those prices were accurate,” the agency added.
Consequently, Amazon has made changes to its Canadian site so products more “accurately represent the savings available to consumers.”
The fine won’t deal Amazon a financial blow, however. Last year the company generated nearly $30 billion in revenue.
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