Amazon overcharged school districts and local governments using opaque pricing algorithms
Senator Elizabeth Warren pressed Amazon CEO over allegations that Amazon Business uses opaque pricing algorithms and misleading contracts to overcharge school districts and local governments. An investigation found that Amazon charged some buyers up to three times as much for identical products, such as a 12-pack of Sharpie markers. The pricing is algorithm-driven and dynamic, and Amazon's group purchasing contracts with OMNIA Partners sidestep traditional competitive bidding. The overcharging is ongoing and has not been resolved.
- Organisation involved
- Amazon
- Product, system or model
- Amazon Business
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