Amazon.com agreed to pay a fine and change its pricing practices in Canada after a two-year investigation concluded the online retailer made unsubstantiated claims about savings on certain products, Canada’s antitrust agency said Wednesday.
Canada’s Competition Bureau said it reached an agreement with Amazon over its findings, adding Amazon’s cooperation and efforts to address the agency’s concerns meant it received “more favorable [treatment] than would otherwise have been the case.”
A representative for Seattle-based Amazon.com wasn’t immediately available for comment.
The bureau said Amazon.com agreed to pay a fine of 1 million Canadian dollars and an additional C$100,000 to cover the agency’s investigative costs. The agreement “ensures that consumers are provided with accurate information and not misled by savings claims,” said John Pecman, head of the Canadian antitrust agency.
Amazon has challenged the retail industry with frequent online price changes, something that changes how shoppers compare prices, how product manufacturers look to sell their wares and how traditional retailers price goods. Amazon has become known for being willing to give up profit on a popular item to capture more sales and to maintain its reputation for having the lowest prices, even if that doesn’t apply to every single item.
Full Content: Wall Street Journal
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