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New unsealed records reveal Amazon's price-fixing tactics, California AG claims

theguardian.com

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Re: New unsealed records reveal Amazon's price-fixing tactics, California AG claims

#61
post #17
post #7

If you've ever seen those "Click To Reveal Price" or "Price Only Revealed At Checkout" products online, this here is one reason why. They help businesses keep discounted prices hidden from Amazon's crawlers.

Blame the manufacturer for this, not the reseller.

It can be both. I worked for a brand that wanted to have a sale just on their own, new site to be able to drive visits, but Amazon's "most favored nation" policies would have caused a backlash.

Re: New unsealed records reveal Amazon's price-fixing tactics, California AG claims

#62

Earlier quoted context omitted.

I believe that it prevents the price from being indexed (by dumb crawlers). I remember hearing our marketing folks talking about enforcing MAP, at the company I used to work for. That company didn’t have the clout of Amazon, but we did sell premium kit. For us, it wasn’t about money, as much as we didn’t want to ever be forced to reduce Quality; which included the shopping experience. We were concerned that outlets s…

I literally don't get it. You're interested in Quality above all else, fine. You're upset that you have competitors who don't care about Quality, fine. So you make your website harder to use, so that... what?

Don't ask me. I'm not in Marketing.

I was just sharing my experience.

But it's not the manufacturers that do that. It's the cheap-slingers. It's their Web site that has the "click to reveal price" button.

Re: New unsealed records reveal Amazon's price-fixing tactics, California AG claims

#63

And what's really stupid about this is that done openly there probably wouldn't be an issue. Insurance companies can demand providers charge them the lowest rate they charge anyone. Would there have been any issue if Amazon had simply said that to get those features you must match any deals you give anyone else?

Amazon isn’t doing this to benefit customers. A seller/store with an item priced at $100 and selling at a discount on their own site would be pushed off the buy box and customers could see the item for sale for $120 from another seller.

Re: New unsealed records reveal Amazon's price-fixing tactics, California AG claims

#64
post #11
post #5

Earlier quoted context omitted.

No, Antitrust law was effectively neutered by the Chicago School and their agent Robert Bork. https://www.theamericanconservative.com/robert-borks-america... (BTW that source is right-wing and can hardly be said to be biased against Bork).

That's fascinating. Bork was denied being on the supreme court but his ideas shaped current antitrust laws. It feels a bit like the old Standard Oil argument: It's ok to have a huge market share so long as pricing for goods gets cheaper even if it hurts competition overall. *edited* for grammar.

Remember, Bork was the third guy who supinely did Nixon's bidding when Attornet-General and his deputy resigned rather than fire the special prosecutor investigating Watergate.

Re: New unsealed records reveal Amazon's price-fixing tactics, California AG claims

#65

Earlier quoted context omitted.

I order from Amazon because of their logistics. For some reason Amazon can ship for free at the same price as the producer's Shopify page that wants to charge me insane shipping because I live in a remote location. Yes, I understand the price fixing is why they aren't selling for less on their own site, but Amazon's superpower is logistics, not years of goodwill and brand loyalty.

I mean, 1-2 day shipping is a huge part of their consumer-first policy, which is why every seller has got to do FBA -- for the longest time until COVID, the algorithm heavily penalized FBM fulfilled by merchant from ranking in the search results. Once FBA started failing during COVID due to warehouse restrictions + sellers and 3PL third party logistics centers really stepped up did FBM even become a thing (and Amazon…

>IMHO the other big superpower Amazon has is to force sellers to eat returns and provide retroactive refunds when a product gets recalled.

I value free and easy returns above lowest price, especially in this day and age of rampant mis and disinformation. Which basically means I almost always buy from the big box stores (including Amazon).

Re: New unsealed records reveal Amazon's price-fixing tactics, California AG claims

#66

Earlier quoted context omitted.

Long-time seller/distributor here -- the main reason for this is mandated by brands, who want to make sure their MAP (minimum advertised price) is respected across all channels. Basically different distribution channels (speciality shops, big box marketplaces, and ecom stores) have very different levels of overhead, so if each channel was allowed to set their own price, you'd end up with brick and mortar stores doing…

> if each channel was allowed to set their own price, you'd end up with brick and mortar stores doing a lot of showrooming and then online stores gaining the bulk of sales because they're cheaper (because their overhead is low). Um... and? That's quite literally "the market working as intended" and while I am not a free-market apologist by any stretch, that seems to be a rather benign effect. What makes MAP especiall…

The problem with "the market working as intended" is you get unfortunate second-order effects. The brick-and-mortar is providing a valuable service by letting you browse, try things on for fit and style, feel the material, and hypothetically by curating products and trying to engender trust in their curation, only selling things of at least passable quality (some more than others).

Historically, you only paid for that service when you bought something, since most stores can't convince you to pay an entrance fee. When you go to the store to select products and then buy online, you're leeching on that service and putting the entire business model at risk. If everyone did that, brick-and-mortars would go out of business and you wouldn't have access to that service, which sucks for everyone.

Re: New unsealed records reveal Amazon's price-fixing tactics, California AG claims

#67

We need all new antitrust laws. The size of these companies is itself a problem. They have so much power that there is no possibility for fair competition. Maybe we can start by taxing companies that are worth more than 1 trillion at an extremely high rate.

I wonder who would prosecute them. What about an AG who, when confronted about doing a bad job, deflects by pointing out that Nasdaq is "smashing records?"

She's not the AG anymore, though I'm not claiming that Todd Blanche is better.

Re: New unsealed records reveal Amazon's price-fixing tactics, California AG claims

#68
Things I don't like about amazon:

- they take a huge cut, making them more expensive. I've heard some folks give 50% to amazon to sell stuff

- they destroy or drive away brands, so you cannot shop for quality

- "customers" are bombarded by ads. I think sponsored links seem to be close to 100% of results until you scroll down a few pages.

Re: New unsealed records reveal Amazon's price-fixing tactics, California AG claims

#70
post #21

Earlier quoted context omitted.

> Lots of retailers (both physical & online) have similar requirements My understanding (IANAL) is that that is illegal, and those retailers should be prosecuted as well. That is essentially price fixing, because the retailer is enforcing their competitors have the same price, using the supplier as an intermediary. > many manufacturers have similar requirements That is a different situation, and is AFAICT legal in th…

Is that actually bad for consumers? Wouldn't deranking the "not lowest" price make it easier for customers to find the lowest price (whether that is a different product on the same storefront, or the same product on a different storefront), and hence be good for customers?

No it prevents businesses from selling directly from their site at a discount, and eliminates any incentive consumers have to purchase a product outside of amazon. It's one of the ways they became a monopoly, in addition to selling at a loss until all the small businesses were forced to close.
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