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Amazon accused of pandemic profiteering

Emma Lunn
Written By:
Emma Lunn
Posted:
Updated:
14/07/2021

Union Unite has called for the Competition and Markets Authority (CMA) to investigate Amazon for price gouging at the height of the pandemic.

The union and competition lawyers Preiskel & Co LLP have submitted a formal complaint to the watchdog against Amazon for abuse of its market position in relation to its pricing during lockdown last year.

Unite says vulnerable and older people who had to stay at home and those who relied on home deliveries would have been particularly exposed to inflated prices for essential items on the Amazon website. It is calling for Amazon to repay the overcharges.

As an example, Carex antibacterial hand lotion usually costs about £1. But in March 2020 the price on Amazon increased to £26.41. The price of a Braun Thermoscan 7 digital thermometer shot up by more than £100 – going from £39.99 to £149.99.

As part of its ‘Action on Amazon’ campaign, Unite research uncovered evidence of price gouging on Amazon throughout 2020. About 50 different items were identified that were being sold on the Amazon site for at least double their usual price from March 2020 to November 2020 onwards.

The products included soap, antibacterial spray and wipes, washing up liquid, hand wash, bleach, thermometers, face masks, toilet paper, disposable gloves, sanitary products, vitamins, toothpaste, sudocream, tea and tinned food.

The union is not the first organisation to accuse Amazon of profiteering from the pandemic. An investigation by Which? just weeks after the pandemic took hold found a wide range of products for sale for inflated, and “often ridiculous”, prices on both Amazon and eBay.

Unite says it formal complaint is an opportunity for the CMA to show it has teeth after its former chairman Lord Tyrie claimed earlier this month the CMA needed an urgent reboot. He cited the need for change particularly in relation to outdated protections for consumers from the growth in market power caused by the digital revolution.

Sharon Graham, Unite executive officer for organising and leverage, said: “Amazon is steeped in corporate irresponsibility, from its anti-union tactics to tax avoidance and the destruction of millions of items of unsold stock. Now Amazon stands accused of profiting from price gouging on its website at the height of the pandemic when vulnerable people were most at need.

“Unite represents Amazon workers but also thousands more pensioners and workers who had to shield during the pandemic. Some of our members died after exposure to Covid 19 while acting as key workers. It’s high time Amazon is held to account for profiteering during the pandemic. We hope our complaint to the CMA leads to a full investigation of Amazon’s practices.”

Tim Cowen, chair of the antitrust practice at Preiskel & Co LLP, said: “We see the case as raising issues of unparalleled public concern and significance. We, and Unite, are committed to a full public debate, and, if necessary, further action through the courts.”

An Amazon spokesperson said: “There is no place for price gouging on Amazon. We worked with the CMA more than a year ago to stop attempts by some sellers to take advantage of the global health crisis. Our action at the time was clear and decisive – we removed the offers referenced in this complaint and terminated seller accounts. We continue to monitor our store 24/7 to remove offers that violate our policies.”


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