A Charlotte-based startup says e-commerce king Amazon (AMZN) jacked up their suggested retail price during the company’s annual discount event—Prime Day—to deceive consumers into thinking that they were getting a deal, when in reality, they weren’t.
Critics have already expressed their displeasure with Amazon’s bid to purchase Whole Foods on antitrust and labor grounds, and now reports say the Federal Trade Commission (FTC) may be looking at the company's pricing strategies.
The FTC began looking into potential discrepancies in Amazon's pricing list after a recent Consumer Watchdog report, a source told Reuters.
The inquiry found that 61 percent of Amazon's products with reference prices were higher for the same product than what the company had sold in the previous 90 days, the Consumer Watchdog wrote in a letter to the FTC dated July 6.
After receiving the complaint, the agency made informal inquiries about the allegations, according to a source who did not want to named in order to preserve his business relationships.
When you say you’re selling an item for 30% off of some higher original price, there are rules about how real that “original” price has to be. If that reference is made up, or the item never actually sells for that price, you can land yourself in some legal trouble. And now sources say that the Federal Trade Commission is having a look to see if that’s what Amazon is up to.
“A source close to the probe” tells Reuters that the investigation stems from a complaint from a letter advocacy group Consumer Watchdog sent to the FTC.
The Federal Trade Commission is looking into claims made by a nonprofit that accuse Amazon of misleading customers about price bargains, a source close to the investigation told Reuters.
The probe is reportedly part of the FTC’s review of Amazon’s recent $13.7 billion deal to buy Whole Foods.
The Federal Trade Commission (FTC) is investigating whether Amazon deceives its customers about pricing, according to a Reuters report published Thursday.
The FTC’s probe is part of a larger review into Amazon’s recent decision to purchase Whole Foods, and stems from a consumer group’s own probe.
In conjunction with its review of Amazon.com's (AMZN) purchase of Whole Foods Market (WFM) , the Federal Trade Commission is investigating claims made against the e-commerce giant, saying it misleads customers about pricing discounts, Reuters reports.
The FTC is reviewing a complaint brought by Consumer Watchdog, an advocacy group, which studied at least 1,000 products on Amazon's website in June, and concluded that the company placed reference prices on roughly 46% of the items.
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Amazon's purchase of Whole Foods requires a wink of blessing from the Federal Trade Commission, but that might not be a done deal. Reuters is reporting that the FTC is taking a particular interest in how Jeff Bezos' online retailer prices, and discounts, its products. According to sources close to the probe, there is a suspicion that the company has offered misleading information to consumers during sale seasons.
The Federal Trade Commission is reportedly looking into whether Amazon's discounts are as good as they seem.
As part of the FTC's review of Amazon's (AMZN) agreement to buy Whole Foods (WFM), the Federal Trade Commission is looking into allegations that Amazon misleads customers about its pricing discounts, Reuters reports, citing a source close to the probe.