Amazon Canada has been fined $1 million by the country’s Competition Bureau for using deceptive price listings on their site.
According to a release from the Canada’s Competition Bureau, who is an independent agency that enforces Canada’s Competition Act, Amazon.com.ca Inc. was charged with listing comparative prices that were misleading.
Here’s a part of the release:
Amazon often compared its prices to a regular price – or “list price” – signaling attractive savings for consumers. The Bureau’s investigation concluded that these claims created the impression that prices for items offered on www.amazon.ca were lower than prevailing market prices. The Bureau determined that Amazon relied on its suppliers to provide list prices without verifying that those prices were accurate.
Amazon has made the necessary changes to reflect accurate price listing, according to the Competition Bureau, as part of the agreement between the e-commerce site and Canada’s Competition Tribunal.
“The agreement reached today resolves the Bureau’s concerns and sends a clear message to the marketplace that unsubstantiated savings claims will not be tolerated,” says the Competition Bureau.
Not to rub salt into the wound, not only does Amazon Canada have to pay the $1.1 million fine, but it must pay $100,00 toward the Competition Bureau’s cost for investigating Amazon Canada’s price listing.
Tip via Recode’s report: “Amazon just got slapped with a $1 million fine for misleading pricing“