Federal Register - July 21, 2021
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Source: Federal Register
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Federal Register / Vol. 86, No. 137 / Wednesday, July 21, 2021 / Notices
the authority to format the products listing on its online marketplace, which includes how a listing is displayed to consumers; b may reject products that Amazon determines are illegal, sexually explicit, defamatory, or obscene; c will require merchants to communicate with their customers exclusively through Amazons platform; and d shall process payments for all purchases of the FBA products, charge the payment instrument designated in each individual consumers account, and remit the agreed-upon monies to the merchant minus the service fees due to Amazon set forth in the applicable contracts.
15.
Upon information and belief, though the amount varies depending on the
product, Amazons FBA fees can amount to as much or more than 40% of the sales price ofa given product.
16.
In addition, Amazon polices the prices charged by merchants listing products on
amazon.com through its Fair Pricing Policy, which gives Amazon the right to take action against merchants for pricing that harms consumer trust. The Fair Pricing Policy provides that"pricing practices that harm customer trust include, but are not limited to: setting a price on a product or service on amazon.com that is significantly higher than recent prices offered on or off Amazon."
17.
Consumers who purchase FBA consumer products on amazon.com may
reasonably believe they are purchasing the products from Amazon. While the ASIN includes "Sold by merchant" in small print underneath the "Buy Now" link, Amazon only explicitly identifies the role of third parties in its FBA program at paragraph 16 of its "Conditions of Use"
for its website.
18.
Through the actions described in Paragraphs 7 through 18 above, Amazon is a
"distributor" of a "consumer product" that is "distributed in commerce," for its FBA products as
by: a receiving delivery ofFBA consumer products from a merchant with the intent to further
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those terms are defined in the CPSA. In sum, Amazon acts as a "distributor" of its FBA products
