Canada’s Competition Bureau has taken a big bite out of Amazon Canada to the tune of $1 million in relation to its pricing practices on its Canadian website. Amazon Canada will also pay $100,000 towards the Competition Bureau’s costs.
The penalties stem from Amazon’s past practice of comparing its prices to a regular price “list price,” giving consumers the impression that they’re getting an attractive deal.
What’s the big problem you ask? According to the Bureau’s investigation, Amazon relied on its suppliers to provide list prices without verifying that those prices were accurate.
“The savings claims were advertised on amazon.ca, in Amazon mobile applications, in other online advertisements, as well as in emails sent to customers.”
The penalty and the changes in pricing practices are part of a consent agreement that is registered with the Competition Tribunal and has the force of a court order.
The Bureau’s investigation took place over a period of two years from May 27, 2014 to May 1, 2016.
In response, Amazon has made changes to the way it advertises list prices on its Canadian website to more accurately represent the savings available to Canadians.
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