If you’ve ever thought that the list price on some Amazon Canada (and Amazon) items sounded absurd considering the actual selling (sale) price, you’re not alone. Canada’s Competition Bureau has fined Amazon Canada $1 million, plus $100,000 to cover costs, for misleading pricing practices on the retailer’s website. According to the findings, Amazon relied on list prices supplied by its suppliers and listed them without verifying them. This often caused bigger perceived savings than the customer was actually getting if they purchased the same item at the correct retail pricing elsewhere.
“Consumers are naturally attracted to claims that they will save money,” said John Pecman, Commissioner of Competition. “We’re pleased that Amazon has put procedures in place to validate list prices received from its suppliers. This ensures that consumers are provided with accurate information and not misled by savings claims. This agreement was reached through collaborative efforts and reflects an innovative approach we call shared compliance.”
Amazon agreed to the fine and has already changed their pricing policy on the Canadian, as well as the U.S. Amazon websites. The investigation took place between May 27, 2014 and May 1, 2016 and the agreement resolves the Bureau’s concerns with regards to Amazon’s pricing. It also “sends a clear message to the marketplace that unsubstantiated savings claims will not be tolerated” by the Competition Bureau.
What do you think about the fine Amazon Canada agreed to with the Competition Bureau? Let us know in the comments below or on Google+, Twitter, or Facebook.[button link=”http://www.competitionbureau.gc.ca/eic/site/cb-bc.nsf/eng/04186.html” icon=”fa-external-link” side=”left” target=”blank” color=”285b5e” textcolor=”ffffff”]Source: Competition Bureau[/button]