The American Federal Trace Commission (FTC) is investigating whether Amazon has been misleading customers with discounts. The company is accused of showing higher discounts on its website than actually given, Reuters reports.
The complaint comes from consumer organisation Consumer Watchdog. This organisation analyzed 1,0000 products in Amazon’s web store of which 46% had a reference price. Of those products Amazon’s reference prices were higher than it had sold the same product in the previous 3 months.
This way discounts appeared to be much higher than they actually were, according to Consumer Watchdog.
The FTC didn’t comment on the story, but Amazon did, “the conclusions the Consumer Watchdog group reached are flat out wrong,” Amazon said. “We validate the reference prices provided by manufacturers, vendors and sellers against actual prices recently found across Amazon and other retailers.”