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Published
Jan 16, 2017
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Amazon Canada fined $1 million

Published
Jan 16, 2017

Amazon Canada has been fined $1 million by the country’s Competition Bureau due to deceptive pricing practices used by the online retailer.
 
Following a two-year investigation, Canada’s Competition Bureau concluded that Amazon’s price comparison practice – which compared its prices to a regular price or "list price" – was misleading to consumers and created the impression that their prices were lower than prevailing market prices. The Bureau determined that Amazon relied on its suppliers to provide list prices and did not verify whether 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.
 

Amazon Canada fined $1 million by the country's competition bureau. - Amazon.ca


The Competition Bureau says that Amazon has now made changes to the way it advertises list prices on its Canadian website so that it accurately represents the savings available to consumers.
 
"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. This ensures that consumers are provided with accurate information and not misled by savings claims,” says John Pecman, Commissioner of Competition, in a news statement.

On top of the $1 million penalty which was part of a consent agreement that is registered with the Competition Tribunal, Amazon will also pay $100,000 toward the Competition Bureau's costs.

Still, this will only be a small pinch in Amazon’s hefty pockets. The online retail giant banked $252 million USD in its third quarter alone, which ended September 30, 2016. 
 

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