US Amazon investigation probes misleading price discounts

Amazon is being accused of using misleading reference prices for its

As part of its review of Amazon's agreement to buy Whole Foods, the Federal Trade Commission is looking into allegations that Amazon misleads customers about its pricing discounts, according to a source close to the probe.

In its most recent study of Amazon pricing, Consumer Watchdog found that 61% of all reference prices were higher than any observed price charged by Amazon in the previous 90 days, while 38% of all reference prices were higher than any price charged by Amazon that the group had ever reviewed.

When you visit the largest online retailer Amazon, you might expect that you are getting good prices and that the discounts they advertise are good deals.

Almost 40 percent of the 4,000 Amazon products the Consumer Watchdog looked at used references or list prices that were not charged by other retailers, according to the report's findings.

"The study issued by Consumer Watchdog is deeply flawed, based on incomplete data and improper assumptions", an Amazon spokeswoman told The Daily Caller News Foundation. In other words, the group claims that Amazon inflated the reference price during a sale to make it appear as though the discount offered by the sale was greater than what it regularly sells for.

The FTC declined comment for this story.

Maryam Mirzakhani, prize-winning mathematician, dies at 40
"It is fun - like solving a puzzle or connecting the dots in a detective case", she said when she won the Fields Medal . Mirzakhani was born in Tehran, Iran on May 3, 1977, and she quickly displayed an unbelievable talent for math.

It will be interesting what the FTC concludes from this investigation. The letter argues that retail locations have closed as Amazon has expanded, and if the company succeeds in taking up a substantial portion of the grocery market that could hit low income communities acutely.

Consumer Watchdog said it believes the Whole Foods acquisition should be blocked unless Amazon changes its pricing strategies.

The FTC's "Guide Against Deceptive Pricing" warns against using a "fictitious" or "inflated" list price for the objective of making the price charged look like a bargain.

However, Amazon ran into similar troubles in Canada, where it settled with Canada's Competition Bureau in January and paid a fain of 1 million CAD, or just over $756,000.

Along with Amazon's pricing practices, allegations of anti-competitive tactics have followed the e-commerce giant around the economy as it tries to win market share and expand into more markets.

Related News:



Most liked

YouTube employs the Redirect Method to counter searches for violent extremist videos
YouTube says that they will measure the success of The Redirect Method by how much it's playlists are engaged. Google will also be working with Moonshot CVE going forward to help launch the Redirect Method in Europe.

India to take on six-times champion Australia in the semi-finals
The seven sixes - most fetched on the leg side, a couple, towering, down the ground - showed just what Mott was anxious about. Former skipper Lisa Sthalekar has advocated for Haynes to be retained, while calling for Lanning to replace Elyse Villani .

Cleveland Cavaliers In Talks To Sign Derrick Rose To 1-Year Deal
One of the biggest names still out there is Derrick Rose , who reportedly is in serious talks to join the Cleveland Cavaliers . On April 2, he was ruled out for the season with the Knicks due to torn meniscus cartilage in his left knee.

State pension age rise brought forward by Government
Britain is just one of many developed economies that have been forced to raise their retirement ages as life expectancy increases. The proposed increases are really an example of the state pension age playing catch up with life expectancy.

Iran vows retaliation against new USA sanctions
US Treasury Secretary Steven Mnuchin holds a press conference at the Treasury Department on July 13, 2017. AIPAC also urged Congress to pass expanded sanctions targeting Iran's missile capability.

Monsoon session: Oppn to corner Govt on Kashmir,China
Post GST implementation, monsoon session will have many more agendas to achieve by resolving various issues along with bills passage.

Mena Massoud, Will Smith join 'Aladdin'
Disney was reported to be interested in both Dev Patel and Riz Ahmed for the title role, but had hoped to land a newcomer. A-list actor Will Smith has been cast to play Genie in the live-action remake of the hit film Aladdin .

'Star Wars Land: First Look at Disney Attractions Unveiled
Construction at both parks began in 2016 and the lands are expected to open in 2019. The other is a battle ride between the First Order and the Resistance.

New Zealand win toss, elect to field against India
India reached the World Cup final for the first time in 2005 under her leadership. The victor on 15th July and will get the last spot on the semi-final list.

Revenue Estimates Analysis Of Whiting Petroleum Corp. (WLL)
The rating was downgraded by JP Morgan to "Neutral" on Monday, May 9. (NYSE:DNR) earned "Sell" rating by UBS on Friday, October 2. Headquartered in Houston, Occidental is one of the largest US oil and gas companies, based on equity market capitalization.

Google Home new streaming Feature
Starting today, you can now play music on your Google Home that you've either uploaded or purchased through Google Play Music . Google Play Music allows you to store up to 50,000 songs in its cloud that could be streamed "anywhere for free".

Nobel committee blames China for Liu's death
The official death toll is unknown, but estimates range from several hundred to thousands of people killed. Dozens of Liu's supporters were prevented from leaving the country to accept the award on his behalf.

Live Crew Co-Founder Fresh Kid Ice Dead at 53
He rapped on both of 2.L.C.'s Top 40 hits, 1989's "Me So Horny" and the lead verse on 1990's "Banned In The U.S.A". Fresh Kid Ice was the only 2 Live Crew member who appeared on all albums.

'Gangnam Style' is no longer the most-viewed video on YouTube
Bilingual smash hit " Despacito " is just six months old, but already has 2.503-billion views on the video site. Along with these videos, there are some more videos which have crossed the 2 billion views mark on YouTube .

Man held after trying to sell missing man's car
Sturgis' father said that Meo and his son went missing last week after being seen in the Solebury area, according to WPVI. Neither DiNardo's lawyer nor his parents have returned calls for comment from the Associated Press .