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Amazon “tricks” customers into buying Fire TVs with false sales prices: Lawsuit

Accepted submission by Freeman at 2024-09-18 17:59:14 from the act now for a limited time dept.
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https://arstechnica.com/gadgets/2024/09/amazon-accused-of-using-false-and-misleading-sales-prices-to-sell-fire-tvs/ [arstechnica.com]

A lawsuit is seeking to penalize Amazon for allegedly providing "fake list prices and purported discounts" to mislead people into buying Fire TVs.

As reported by Seattle news organization KIRO 7 [kiro7.com], a lawsuit seeking class-action certification and filed in US District Court for the Western District of Washington on September 12 [PDF [arstechnica.net]] claims that Amazon has been listing Fire TV and Fire TV bundles with "List Prices" that are higher than what the TVs have recently sold for, thus creating "misleading representation that customers are getting a 'Limited time deal.'" The lawsuit accuses Amazon of violating Washington's Consumer Protection Act [wa.gov].
[...]
Camelcamelcamel [camelcamelcamel.com], which tracks Amazon prices, claims that the cheapest price of the TV on Amazon was $280 in July. The website also claims that the TV's average price is $330.59; the $300 or better deal seems to have been available on dates in August, September, October, November, and December of 2023, as well as in July, August, and September 2024. The TV was most recently sold at the $449.99 "List Price" in October 2023 and for short periods in July and August 2024, per Camelcamelcamel.
[...]
The lawsuit claims that in some cases, the List Price was only available for "an extremely short period, in some instances as short as literally one day."
[...]
Further, Amazon is accused of using these List Price tactics to "artificially" drive Fire TV demand, putting "upward pressure on the prices that" Amazon can charge for the smart TVs.

The legal document points to a similar 2021 case in California [PDF [arstechnica.net]], where Amazon was sued for allegedly deceptive reference prices. It agreed to pay $2 million [kelleydrye.com] in penalties and restitution.

Other companies selling electronics have also been scrutinized for allegedly making products seem like they typically and/or recently have sold for more money. For example, Dell Australia received an AUD$10 million fine [arstechnica.com] (about $6.49 million) for "making false and misleading representations on its website about discount prices for add-on computer monitors," per the Australian Competition & Consumer Commission.


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