Amazon has agreed to shut down its “Sold by Amazon” program, and pay $2.25 million, in an agreement with the Washington Attorney General.
Washington AG Bob Ferguson launched an investigation into Amazon’s “Sold by Amazon” program. The program effectively amounted to price-fixing, as Amazon and third-party sellers agreed to a specific price, rather than compete with each other.
Amazon has agreed to shut the program down, and pay $2.25 million to the Attorney General’s office.
“Consumers lose when corporate giants like Amazon fix prices to increase their profits,” Ferguson said. “Today’s action promotes product innovation and consumer choice, and makes the market more competitive for sellers in Washington state and across the country.”
The investigation is not the only such legal challenge the company is facing. Washington DC AG Karl A. Racine filed a similar lawsuit against the company, accusing it of using its “most favored nation” (MFN) agreements to price-fix.