7/11/23

Amazon Is up to More Shenanigans

Amazon allegedly got caught in more shady shenanigans.

The Federal Trade Commission filed a lawsuit against Amazon alleging that it knowingly tricked customers into signing up for Prime subscriptions and then intentionally made it more difficult to cancel them. 

But customers aren’t the only “prime” target for Amazon’s alleged shadiness. Retailers who use the company’s online marketplace to sell products are also falling victim. 

The FTC is expected to file another major lawsuit alleging that the company abuses its market power to reward third-party merchants who use its logistics services and punish those who don’t.

Merchants already pay Amazon a commission for each marketplace sale, with Amazon’s average cut surpassing 50% in 2022.

But third-party sellers can also pay Amazon for optional services, like warehousing, shipping, and even product advertising.

The FTC has reportedly amassed evidence that Amazon disadvantages sellers that don’t use these services by making it more difficult to find their products in the marketplace.

So not only is Amazon taking major cuts from retailers, but they are allegedly punishing merchants who don't cough up more money for the tech giant's additional services.

The FTC isn’t the only government agency cracking down on Amazon. Earlier this year, a National Labor Relations Board judge ruled that Amazon’s union busting violated U.S. labor law

This is what happens when companies like Amazon get too big and powerful.

Corporate consolidation is bad news for everyone except the super-rich. 

It’s awful for consumers, workers, and the economy as a whole — and it’s driving the most extreme wealth imbalance in over a century.

We must stop the monopolization of America.

And shop small on Prime Day.

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