Amazon is encountering issues due to its pricing strategies.
Activists in the consumer protection field are bringing charges against tech giant Amazon. They claim Amazon engaged in illegal price advertising during their Prime Deal Days event. Despite this, Amazon seems to view the incident favorably.
The complaint stems from allegations that Amazon's discounts during Prime Deal Days didn't adhere to the rule of using the lowest price from the previous 30 days as a basis, as required by law. Instead, Amazon compared its price cuts to the manufacturer's suggested price or an average customer price, which advocates say misled customers about the true value of the offer.
The case is backed by a recent decision from the European Court of Justice (ECJ), where they ruled that retailers must calculate discounts based on the lowest price from the previous 30 days. The Consumer Protection Center of Baden-Württemberg, which also initiated that case, is using this judgment to support their battle against Amazon.
Oliver Buttler, from the Consumer Protection Center, stated, "Amazon's advertising creates a misleading impression of the appeal of the deals." He argued that Amazon is disregarding ECJ guidelines and is guilty of "illegal baiting and consumer deception." Buttler emphasized that they aim to put an end to these practices.
Before these allegations, Amazon reported high sales during the event, even labeling it their "biggest October shopping event ever." Prime members had early access to Christmas deals, and more items were sold than in previous events, the company reported.
Other retailers might face similar consequences if they fail to comply with the ECJ's ruling on discount calculations. The other tech companies should take note of Amazon's legal battle and ensure their pricing strategies adhere to these guidelines to avoid any potential consumer protection issues.
