NEWS  News  April 25, 2024  Reading time: 2 Minute(s)

Max (RS editor)

The Italian Competition and Market Authority (AGCM), commonly known as Antitrust, has fined Amazon 10 million euros for what it deems an "unfair commercial practice". The fine was issued after AGCM found that Amazon had been pre-selecting the "periodic purchase" option instead of the "single purchase" option for many products on its website, potentially pressuring consumers into a recurring purchase cycle.

According to AGCM, this practice unfairly restricts consumer choice by automatically pre-selecting a recurring purchase option. This method often leads consumers to buy a product regularly without actively deciding to do so.

This is particularly concerning when applied to frequently bought consumer goods like hygiene products.

In response to the ruling, Amazon issued a statement expressing strong disagreement with the decision and announced its intention to appeal. The company contends that its practices are designed to improve customer convenience and that it believes customers still have the freedom to choose single or recurring purchases.

However, the AGCM argues that the automatic selection of recurring purchases limits consumer autonomy, as it creates a tendency to buy more often than necessary. The authority emphasizes that customers should always have a clear and distinct choice when deciding whether to opt for recurring purchases.

The impact of the AGCM's decision could be significant, given Amazon's extensive reach and the increasing popularity of subscription-based shopping. The fine serves as a reminder of the importance of maintaining transparent and fair consumer practices in e-commerce.

As this case develops, it could set a precedent for other regulatory bodies monitoring the business practices of major e-commerce platforms. The outcome of Amazon's appeal may further shape the conversation around consumer rights and business ethics in the digital age.

 IMAGES CREDITS: AGCM / AMAZON