Polish watchdog fines Amazon $8 million for allegedly misleading customers
E-commerce giant, Amazon, has been handed a hefty fine of nearly $8 million by Poland's consumer protection agency, the UOKiK. This penalty is the result of an investigation into Amazon's sales practices that started in September 2021, and escalated into a formal inquiry by February 2023. The UOKiK has accused Amazon of "misleading consumers about the conclusion of sales contracts on its online marketplace" and employing deceptive design elements.
Amazon's confusing contract practices
The UOKiK's probe revealed that Amazon reserves the right to cancel purchases, even after customers have paid and received order confirmation. According to Amazon, a sales contract is only finalized once shipment information is dispatched. However, the watchdog criticized Amazon for not making this detail clear to customers, stating it was only disclosed at "the last stage of purchase" and was often hard for consumers to find.
Negative impact on consumers due to misleading messaging
The UOKiK underscored that Amazon's "Buy now" or "Proceed to finalize the purchase" buttons imply a contract is sealed upon ordering. This misleads customers about when the sales contract is actually completed. The watchdog also spotlighted negative outcomes for consumers such as not receiving their ordered product, missing out on attractive prices, and having their funds tied up until they are refunded.
Deceptive design and delivery claims
The UOKiK also criticized Amazon's deceptive design which it said presents misleading information about product availability and delivery dates. The watchdog discovered that Amazon does not always fulfill these deadlines or dispatch products immediately, contrary to the claims presented to consumers. "Amazon treats the data it provides on availability and shipping date as indicative but the way it is presented does not indicate this," the agency pointed out.
UOKiK denounces Amazon's 'dark patterns'
UOKiK's President, Tomasz Chrostny, took a strong stance against Amazon's practices, emphasizing that accurate information about product availability and swift shipping is vital for consumers. He stated, "However, such information cannot be a lure. If the entrepreneur provides a specific delivery date, he or she must meet it." Chrostny labeled Amazon's tactics as "dark patterns" because they pressure consumers to order products hastily.
Amazon's delivery guarantee service comes under fire
UOKiK also discovered that Amazon did not inform consumers about its delivery guarantee service before they placed an order. The specifics were only provided at the order summary stage and in subsequent links detailing delivery information. Moreover, the watchdog found that Amazon did not include "information about the 'Delivery Guarantee' in the purchase confirmation sent to shoppers." As of now, Amazon has not commented on the sanction but can choose to appeal.
