By Ralph Michaelson, | January 12, 2017
Canada's Competition Bureau has fined Amazon for allegedly misleading customers with its list prices. (Cory Doctorow/CC BY-SA 2.0)
Amazon has been fined C$1 million for allegedly misleading customers with its pricing scheme. Canadian authorities announced the decision to fine Amazon Canada based on the results of their investigation.
The online shopping giant was accused of relying on a marketing gimmick to influence customers to think that its advertised price saves them a couple of dollars.
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The two-year investigation led the Competition Bureau concluded that Amazon violated its customer's trust. Reuters reported that the company depended on its suppliers to dictate their listed prices, but did not cross-check their accuracy. The practice misled some customers into thinking that Amazon's prices are lower than the prevailing market prices. These allegedly inaccurate prices and savings were advertised on platforms like emails, its mobile applications, and on other online advertisements.
The consumer watchdog conducted the investigation between May 2014 to May 2016. According to New York Times, Amazon started quietly removing list prices from its U.S. website last year. Authorities suspect that the company started changing the process due to rising lawsuits over false advertising.
Canada's Competition Bureau also noted that the online retail company has begun adjusting its Canadian website. The adjustments will show customers their actual savings more accurately. The company has also been ordered to shoulder the C$100,000 costs of the bureau's investigation.
Amazon was recently in the headlines after the Indian government complained about a particular product being sold through its Canadian portal. According to Fortune, the product in question was a doormat that resembles the Indian national flag.
Sushma Swaraj, India's external affairs minister, stated that "Amazon must tender unconditional apology." She also added "we will not grant Indian Visa to any Amazon official" if their demands are not met.
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