Italy's competition authority AGCM has imposed a fine of 10 million euros ($10.6 million) on two Amazon companies for allegedly engaging in unfair commercial practices related to online purchases.
(Photo : DENIS CHARLET/AFP via Getty Images)
Italy Fines Amazon for the 'Recurring Purchase' Option
According to the AGCM, the practice of pre-selecting the "recurring purchase" option instead of the "one-time purchase" option limits consumer choice and infringes on their freedom to choose.
This pre-selection tactic, applied to a wide range of products on Amazon's Italian website, has been deemed contrary to standards of professional diligence.
The AGCM's investigation revealed that both products sold directly by Amazon and those offered by third-party sellers on the marketplace were subject to this pre-selection strategy.
By defaulting to the recurring purchase option, consumers may inadvertently make periodic purchases even when not necessary, thereby restricting their ability to make informed decisions.
"This practice significantly restricts consumer's freedom of choice. The graphic layout of the pre-selected recurring purchase option may lead consumers to buy products periodically-even when there is no actual need-thereby limiting their ability to choose freely," the AGCM said in a press release statement.
"Moreover, the conduct implemented by the company was deemed contrary to the standards of professional diligence. As a major operator, Amazon is expected to design its online interfaces, particularly those related to purchasing processes, in a manner that allows consumers to make free and informed commercial decisions."
The AGCM also raised objections to the pre-selection of the paid fast delivery option. In response, the Authority has accepted Amazon's commitments, which entail exclusively pre-selecting the free delivery option in future transactions.
Furthermore, the two Amazon group companies will compensate consumers who reached out to Customer Service in 2023 to voice their grievances about this matter.
Amazon's Response to the Investigation
In response to the investigation, Amazon has expressed strong disagreement with the ruling and intends to appeal, according to AFP. The company asserts that its Subscribe and Save program offers customers benefits such as cost and time savings on regular deliveries of frequently used items.
Additionally, Amazon highlights that customers in Italy have collectively saved over 40 million euros through this subscription program.
Furthermore, the AGCM raised concerns regarding the pre-selection of the "paid fast delivery" option on the Amazon website. However, Amazon has agreed to only pre-select the free delivery option in the future and to compensate consumers who raised complaints about this issue in the past year.
"Every day customers benefit from the Subscribe and Save program by saving money and time on regular deliveries of items they routinely use," Amazon said in a statement.
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