Amazon Fined $1m for Misleading Pricing
Ashley Allen / 5 years ago
Online retailer Amazon has been fined $1 million in Canada for posting misleading pricing on its listings, the country’s government has announced. A months-long investigation by the Canadian Competition Bureau found that, between May 2014 and May 2016, Amazon compared its sale price to a “list price” that that was inaccurate, falsely implying that customers were getting items cheaper. The Bureau found that the list prices were given by goods suppliers but were not verified before being posted to Amazon.
“These claims created the impression that prices for items offered on http://www.Amazon.ca were lower than prevailing market prices,” the Competition Bureau said (via The Financial Post). “The agreement reached today resolves the Bureau’s concerns and sends a clear message to the marketplace that unsubstantiated savings claims will not be tolerated.”
In addition to the $1m fine, Amazon will also pay $100,000 as a settlement to the Competition Bureau. The Bureau notes that Amazon has already begun to change the way it prices items on its Canadian site, and Amazon claims that it will be making similar changes to its international sites.
“Consumers are naturally attracted to claims that they will save money,” John Pecman, Commissioner of Competition, said. “This ensures that consumers are provided with accurate information and not misled by savings claims.”