US e-commerce giant Amazon is taking action to put a stop to people capitalizing on the fears brought about the continued spread of the novel coronavirus. The company announced that it has pulled out more than 1 million products from its platform that have been found to be guilty of price gouging and false advertising.
Amazon mentioned in a statement that part of its terms of service requires sellers to provide accurate information on their product's page. Listings that mislead customers or inaccurate in describing the specific product automatically violates the company's terms. The company also imposes its Fair Pricing Policy on all products, which means that listings cannot be priced "significantly higher" than other listings on the platform.
The move comes right after several consumers pointed out the proliferating practice of price gouging on the platform for trending items such as face masks and other personal hygiene items. Some listings are also charging buyers "exorbitant" shipping costs. On some listings, the prices of the items were more than five times their normal price before the epidemic broke out in China.
A spokesperson for the company mentioned in an interview that they were very much disappointed with the way people have been taking advantage of the situation by artificially raising prices for the necessary items needed during the global crisis. In line with their policy, the company had decided to immediately take action, resulting in the removal of more than 1 million listings on its platform. The spokesperson added that they will continue to actively monitor all new listings and remove offers that violate their standing policies and terms.
The spread of overpriced and falsely advertised products on the company's platform comes as it faces continued scrutiny over the continued proliferation of fake and defective products. Regulators have called Amazon's attention over the issues, accusing it of doing very little to put a stop to the practice. Amazon previously argued that it is doing its due diligence, but there are simply just too many third-party sellers on its platform, most of which use false emails and names to register their accounts. Even if the company manages to delete those accounts and listings, illicit sellers can simply make a new one using false information.
Similar to what had originally happened in China, companies in the United States are now feeling the effects of the rampant fear that is gripping customers over the possible spread of the coronavirus. US retailers such as CVS and Walgreens have previously issued warnings of possible shortages of products such as cleaning wipes and face masks.
