Amazon to pay $1.1M to Competition Bureau over pricing practices

Online retailer Amazon has agreed to pay $1.1 million in penalties and costs to the Competition Bureau to settle concerns raised over its pricing practices.

The bureau says the concerns related to the "list price'' Amazon used to compare what it charged for an item with a "list price.''

The comparisons usually signalled "attractive savings'' for consumers but were unsubstantiated by the company, the bureau said.

It said Amazon relied on its suppliers to provide the list prices without verifying that they were accurate.

The savings claims were used on its website, Amazon.ca; on its mobile application, in online advertisements and in emails that were sent to customers.

The regulator noted the retailer has made changes to the way it advertises list prices on its website.

The bureau's investigation spanned from May 27, 2014 to May 1, 2016.

"Consumers are naturally attracted to claims that they will save money,'' said John Pecman, the commissioner of competition at the bureau.

"We're pleased that Amazon has put procedures in place to validate list prices received from its suppliers. This ensures that consumers are provided with accurate information and not misled by savings claims.''