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Amazon.ca has been slapped with a $1.1 million penalty by Canada’s Competition Bureau.
Turns out the major online retailer was not doing its due diligence.
#ICYMI: Amazon to pay $1.1 million to resolve the Bureau’s concerns about pricing practices https://t.co/DTWwIXaCaA pic.twitter.com/qvqm378LqO
— Competition Bureau (@CompBureau) January 12, 2017
Amazon often compared its online pricing to regular price or “list price,” showing Canadians the potential for savings while using their website.
But upon an investigation by the Bureau, it was concluded that the saving claims were false and misleading, according to a media release by the Competition Bureau.
The Bureau investigated pricing practices on Amazon.ca between May 27, 2014 to May 1, 2016. During that time they discovered that Amazon relied on the original suppliers to provide list prices without verifying that the prices were accurate.
Amazon changes pricing practices and pays $1.1 million to settle price advertising case https://t.co/EZNOGlEDA9 pic.twitter.com/e9sO0PSB90
— Competition Bureau (@CompBureau) January 11, 2017
“Consumers are naturally attracted to claims that they will save money. We’re pleased that Amazon has put procedures in place to validate list prices received from its suppliers,” stated John Pecman, Commissioner of Competition in the press release.
“This ensures that consumers are provided with accurate information and not misled by savings claims.”
After the investigation, an agreement was reached resolving the Bureau’s concerns, while sending other retailers a clear message that unsubstantiated savings claims will not be tolerated.
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