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Misleading Pricing Practices at Amazon Canada

Posted on 1.11.2017

Amazon Canada will pay a $1 million fine for what is described as "misleading pricing practices."

The investigation reportedly focused on Amazon's practice of displaying its prices compared to higher "list prices" - suggested manufacturer prices (MSRPs) designed as a marketing gimmick to make users think they were getting a deal (even though buyers rarely ever actually pay that price). 

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"The Bureau's investigation concluded that these claims created the impression that prices for items offered on were lower than prevailing market prices," Canada's Competition Bureau said in a statement. "The Bureau determined that Amazon relied on its suppliers to provide list prices without verifying that those prices were accurate."

What's the potential impact here in the U.S.? With Amazon absolutely dominating the e-commerce landscape these days, expect regulators to turn their attention to the marketplace in short order.

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