Amazon Accused Of Questionable Pricing

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Before or at the start of the promotion, Kogan increased the prices of the three computer monitors featured on its eBay store.

As a result, Kogan claimed consumers received a 20% discount off the newly increased prices, they in fact only received a 9% discount off the previously advertised prices for each of the three computer monitors.

Also in the firing line for dodgy online pricing has been the Epharmacy Group the owner of the websites for Chemist Warehouse, My Chemist, and Epharmacy, has paid penalties totalling $32,400 following the issue of three infringement notices by the Australian Competition and Consumer Commission.

The ACCC said at the time that they had reasonable grounds to believe that Epharmacy made false or misleading representations that consumers would save money off the recommended retail price (RRP) for certain Healthy Care branded products purchased through the Chemist Warehouse, My Chemist, or Epharmacy websites.
In Australia, several retailers including JB Hi Fi and Harvey Norman change the price of goods daily a product starting the day at one price online can end up 30% cheaper by the end of the day as retailers compete for customers.

During an Amazon US study, Consumer Watchdog said it found at least half the list prices examined were greater than the prevailing market price.

“There’s no real transparency about what the heck they’re doing,” said John M. Simpson, privacy project director for Consumer Watchdog, which filed a petition this week in the USA calling on California Atty. Gen. Xavier Becerra to investigate Amazon. “At a minimum, there needs to be some clear understanding about how they’re coming up with these purported list prices.”

The practice has garnered widespread attention in recent years after several lawsuits against retailers.

It’s been revealed that Amazon was fined about $750,000 in January by Canada’s Competition Bureau for misleading savings claims. Amazon voluntarily changed its pricing practice in Canada prior to the bureau’s fine.

Bricks-and-mortar stores have also been accused of misleading pricing practices.

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