Amazon is accused of abusing the global pandemic, according to a damning report through Public Citizen. As more people turned to online grocery shopping for the mandates to stay home, Amazon’s profits soared, though some of its values are said to have increased.
Reports of value increases on Amazon arose from the beginning and Amazon said it was running with the relevant government to curb a wave of value increases, cutting millions of pieces due to false coronavirus claims, and even blamed several nasty third-party distributors on the site.
Amazon has even introduced a recruiting wave to help meet insatiable demand, while claiming it continues to combat value abuses on the platform. Amazon has also come to call for a federal law on abusive pricing laws. However, in his report, Public Citizen, presented evidence that Amazon’s movements might not have been as altruistic as the company suggested, he stated that “there is no room for abusive pricing on Amazon. “
The “Prime Gouging” report mainly points to 15 products that were sold on Amazon, either directly through Amazon or through third-party distributors, between February and August. The report notes that these products have recorded increases ranging from 76% to more than 1,000%. .
For example, disposable masks have noticed that their value has increased by 1,000%. According to the report, a pack of 50 disposable masks was available for about $4 before the pandemic began. In recent months, a similar package of 50 disposable masks has sold for up to $40, directly through Amazon.
Another notable offense seems to be corn starch, which has an average value of $0. 89 for a 6. 5-ounce container of Clabber Girl corn starch, but which has been sold for up to $9. between $5. 69 and $11. 00, with variable shipping costs.
Third-party resellers account for a portion of Amazon’s revenue, as Amazon maintains a percentage of sales. It’s a synergistic relationship, when Amazon resellers generate more revenue, so does Amazon.
It seems that some of the maximum values above the maximum values of parts that can be obtained from external distributors were flour, rice and paco according to towels, with value increases of 941 consistent with cents, 641 consistent with cents and 450 consistent with cents, respectively. .
In reaction to its findings, Public Citizen notes that Amazon’s value fraud is a violation of many state laws that prohibit value increases of more than 10%. At the conclusion of its report, Public Citizen is now calling for a unilateral federal law to ban abuse of value. , as online grocery shopping platforms can circumvent state law.
“The absence of a federal law, combined with online purchases that go beyond state limits, has created coverage gaps that oppose abusive pricing and led to useless abusive national pricing legislation to fight online pricing,” the report says.
Specifically, Public Citizen proposes the following for a new federal law:
In addition, the Public Citizen report urges Amazon to reform its product and pricing directory practices, which tend to be nebulae at best productive and at worst misleading. Ultimately, Amazon publishes not only a complete history of article values, but also an average value, as well as recommended MSRP.
Other recommendations come with the introduction of a value constraint that can increase an article, avoiding the practice of creating new pages for already indexed parts (making it difficult to assess value history) and providing a transparent way for consumers to report disorders with a list. products.
In a statement, an Amazon spokesperson noted that the Public Citizen report had helped identify a number of value errors and reiterated that Amazon had disposed of more than a million ads classified under suspicion of unfair pricing, while postponing some 10,000 sales accounts.
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