Amazon appeals for federal law against price gouging amid COVID-19

Source: Xinhua | 2020-05-15

Amazon's Vice President for Public Policy Brian Huseman on Wednesday wrote an open letter to U.S. Congress, asking for a strong federal anti-price gouging law amid the COVID-19 pandemic.

"We're seeing a nationwide surge in complaints about price gouging," Huseman penned, suggesting that when the federal government declares a public health crisis or national emergency, it should also establish clear pricing standards, define who and what are covered by law, and ensure strong enforcement authority.

"Our collaborative efforts to hold price gougers accountable have clarified one thing: To keep pace with bad actors and protect consumers, we need a strong federal anti-price gouging law," he said.

Some U.S. states define price gouging as a price ranging from 10 to 25 percent above average sales prices, while others simply prohibit "unconscionably excessive" price increases.

Some have no explicit laws against price gouging, and many states permit price increases that reflect increased costs of goods and supply chain costs, according to Huseman.

He argued that the disparate standards among states present a significant challenge for retailers working to assist law enforcement, protect consumers, and comply with the law.

The nation needs a federal price-gouging law that would "ensure that there are no gaps in protection for consumers" and "help retailers like Amazon more effectively prevent bad actors and ensure fair prices," he wrote.

Amazon has already deployed technology to seek out and remove unreasonable prices on its platform, and has a team focused on investigating unfairly priced products that are now in high demand, such as protective masks and hand sanitizers, Huseman wrote.

As a result, the company has removed over half a million offers due to coronavirus-based price gouging, with nearly 4,000 seller accounts in the U.S. store alone suspended for violating fair-pricing policies, Huseman added.