Amazon's 'secret ad pricing scheme

Image Source : Google Stay Updated By: Malay Ghosh

How the Scheme Works

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The Impact on Consumers

[{"selector":"#anim-0cc9e69f-ec8f-4412-bcf3-acb55d6ed990 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-42.38794550099935%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-f306d478-c9fe-42c3-ab70-1ec2ea54116a","keyframes":{"transform":["translate3d(117.79935%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-10f788bf-a069-4fce-b372-3defd38daf39","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-121bebf7-d8e0-4c0b-98e4-04a1fb9f7ac2","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-9df4e0cc-343c-4947-87f9-bc2c26c7a128","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-fd7bbc4e-a578-4fd6-86a3-a6412ce1aaa9","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":300,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] Amazon's secret ad pricing scheme means that consumers may be paying more for products than they would otherwise. This is because Amazon's ad prices are higher than competitor prices. Image Source : Google

The Impact on Competitors

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The Investigation

[{"selector":"#anim-502d0aab-62c0-48ca-9bfb-6d453d6a412b [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-29.865056696003755%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-53555ca4-2922-460e-a5c6-e932dab39f5c","keyframes":{"transform":["translate3d(117.79935%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-cf2b15e2-2a5c-41c4-944a-fe9b554ab43c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-84ac5679-8485-48d5-bec8-3fc5cb7c91e0","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-6e8f5ef4-3d6a-4e7b-b943-2a3ed1160f59","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-eb113ae8-6e44-4d10-8940-7a3dfbdda60d","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":300,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-878a32f6-e696-4e40-8c48-37e26084b385","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] The US Federal Trade Commission is currently investigating Amazon's secret ad pricing scheme. The FTC is investigating whether Amazon's scheme violates antitrust laws. Image Source : Google

What Consumers Can Do

[{"selector":"#anim-4ea42549-9a54-426a-b21e-f01a8cdadb97 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-f27c30eb-8c81-4854-b880-e75f93e5d31b","keyframes":[{"offset":0,"transform":"translate3d(0, -965.22673%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.29,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.45,"transform":"translate3d(0, -271.421756476%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.61,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.71,"transform":"translate3d(0, -92.275675388%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.8,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.85,"transform":"translate3d(0, -34.651639607%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.92,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.96,"transform":"translate3d(0, -15.057536987999999%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":1,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"}],"delay":100,"duration":2000,"fill":"both"}] [{"selector":"#anim-72050f29-3ba1-4a39-9e30-1338ad31fa28","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-5e7d147f-d2ad-4fc3-9471-27dcb3b2b197","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":300,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-e8925a66-3541-46fc-9e96-8ffbf271ee99","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-717a21f0-043e-4566-8a13-474e8b9c4432","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":3}] Consumers can do their part to fight against Amazon's secret ad pricing scheme by shopping around and comparing prices. Consumers can also support small businesses and avoid shopping on Amazon. Image Source : Google Cross

What Competitors Can Do

[{"selector":"#anim-98c374b4-bcc6-43f6-a154-ce6989f27b02 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(27.174312913506395%, 0, 0)","translate3d(0%, 0, 0)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-fca030c4-71e9-4e5e-9af0-f7d1bdbb5122","keyframes":{"transform":["translate3d(-115.53399%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7096a910-7968-4a06-92b7-0d1fd392f4a2","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-747037fc-ad71-4261-9187-04b558146ae8","keyframes":{"transform":["scale(0.15)","scale(1)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"forwards"}] [{"selector":"#anim-aa77b4e6-6409-4293-a79c-cc24392899d7","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1185d922-16eb-4e5c-aaae-1d7ceb53001b","keyframes":{"transform":["translate3d(115.18987%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":0,"duration":600,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Competitors can do their part to fight against Amazon's secret ad pricing scheme by lobbying for stricter antitrust laws. Competitors can also file complaints with the FTC. Image Source : Google

Future of Amazon's Secret Ad Pricing Scheme

[{"selector":"#anim-527bfae7-e2ed-4e88-a21b-6206f40dacd9 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, -9.876129816177581e-7%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":1000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-863ff276-2c5b-417d-9f32-f40c341bfe4b","keyframes":[{"offset":0,"transform":"translate3d(0, -644.3123%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.29,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.45,"transform":"translate3d(0, -181.18061876000002%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.61,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.71,"transform":"translate3d(0, -61.59625588000001%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.8,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.85,"transform":"translate3d(0, -23.130811570000002%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":0.92,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"},{"offset":0.96,"transform":"translate3d(0, -10.05127188%, 0)","easing":"cubic-bezier(.5, 0, 1, 1)"},{"offset":1,"transform":"translate3d(0, 0%, 0)","easing":"cubic-bezier(0, 0, .5, 1)"}],"delay":100,"duration":2000,"fill":"both"}] [{"selector":"#anim-39af9ad6-6e0a-4617-b1a5-4a619dff4f02","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-38f45b0c-67b5-4be6-98b1-13fac04cb05e","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":300,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-6364afa9-cb0c-4967-aa5f-a572acad79b8","keyframes":{"opacity":[0,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-9aab0a91-e7b3-4ec4-8dc7-11477f576a6e","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] It is unclear what the future holds for Amazon's secret ad pricing scheme. The FTC's investigation is ongoing, and it is possible that Amazon could be forced to change its practices. Image Source : Google

Conclusion

[{"selector":"#anim-5d781589-2ae5-4ec5-9927-9c5dd284994b [data-leaf-element=\"true\"]","keyframes":{"transform":["translate3d(-18.835851459248797%, 0, 0) translate(-25%, 0%) scale(1.5)","translate3d(0%, 0, 0) translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"fill":"forwards"}] [{"selector":"#anim-4202e5b8-cceb-4a58-bdeb-3803f752d72f","keyframes":{"opacity":[1,1]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-d1ed971f-e69a-419b-8f9d-813cfa763678","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-f81bccde-d148-4813-b9df-e2fa2c3cb01a","keyframes":{"opacity":[0,1]},"delay":300,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-a9802f2f-1b36-4c3f-a012-b56dc3a53f7f","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":300,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-8a63f81d-7da1-401a-98b1-87e85f9b8540","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":300,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] Amazon's secret ad pricing scheme is a serious problem. It harms consumers, stifles competition, and may violate antitrust laws. We must all do our part to fight against Amazon's secret ad pricing scheme. Image Source : Google

Take Action

[{"selector":"#anim-e877d749-a4ec-4739-90ba-741b0fa98193 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(0%, 0%) scale(1.5)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-27e4ba19-55dd-46e1-a8bd-9b98df05e2e7","keyframes":{"opacity":[1,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-14b14756-60b7-4fc2-ae38-c8abb0167905","keyframes":{"transform":["scale(3)","scale(1)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-733255fa-1cf5-4307-a7dc-e3d62c539e1e","keyframes":{"opacity":[0,1]},"delay":300,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"both"}] [{"selector":"#anim-20af41c8-3771-40a7-867d-7a7befe84c5e","keyframes":{"transform":["scale(0.3333333333333333)","scale(1)"]},"delay":300,"duration":3000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-b72c9003-daed-463f-aaf1-60532bff2acb","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":3}] [{"selector":"#anim-415d2b0d-8579-4739-a6cb-6b6a34aedd10","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":3}] You can take action against Amazon's secret ad pricing scheme by shopping around, supporting small businesses, and lobbying for stricter antitrust laws. You can also file a complaint with the FTC. Image Source : Google Arrow Learn more