Amazon Buy Box May Not Offer the Best Deal
Ashley Belanger (via Slashdot):
Amazon rigged its platform to “routinely” push an overwhelming majority of customers to pay more for items that could’ve been purchased at lower costs with equal or faster delivery times, a class-action lawsuit has alleged.
The lawsuit claims that a biased algorithm drives Amazon’s “Buy Box,” which appears on an item’s page and prompts shoppers to “Buy Now” or “Add to Cart.” According to customers suing, nearly 98 percent of Amazon sales are of items featured in the Buy Box, because customers allegedly “reasonably” believe that featured items offer the best deal on the platform.
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Authorities in the US and the European Union have investigated Amazon’s allegedly anticompetitive Buy Box algorithm, confirming that it’s “favored FBA sellers since at least 2016,” the complaint said. In 2021, Amazon was fined more than $1 billion by the Italian Competition Authority over these unfair practices, and in 2022, the European Commission ordered Amazon to “apply equal treatment to all sellers when deciding what to feature in the Buy Box.”
These investigations served as the first public notice that Amazon’s Buy Box couldn’t be trusted, customers suing said. Amazon claimed that the algorithm was fixed in 2020, but so far, Amazon does not appear to have addressed all concerns over its Buy Box algorithm. As of 2023, European regulators have continued pushing Amazon “to take further action to remedy its Buy Box bias in their respective jurisdictions,” the customers’ complaint said.
See also: Nick Heer.
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