Amazon Takes A Zero-Tolerance Stance On Price Gouging: Removes 3,900 Merchants For Price Violations

Amazon (AMZN) is focusing on its commitment to its customers during the coronavirus pandemic by enacting a zero-tolerance policy for price gouging. The company has suspended as many as 3,900 merchant accounts for selling products in the U.S. that violate its fair-pricing policies.

The company said it is working aggressively to protect its customers from being exploited during the coronavirus crisis by monitoring its stores 24/7 through automated and manual systems and removing “bad actors and offers” as they arise.

With more than half of the products on Amazon sold by third-party sellers, Amazon is strictly enforcing its rules about exploiting consumers during and emergency by charging excessively high prices on products as well as shipping.

“We began taking these enforcement actions promptly upon discovering this kind of misconduct, and we’ve been partnering directly with law enforcement agencies to combat price gougers and hold them accountable,” Amazon said in a statement.

“We are constantly monitoring our stores for unfair prices and listings that make false claims in regards to COVID-19. We have dynamic, automated systems in place that locate and remove unfairly priced items. In addition, we have deployed a dedicated team that’s working continuously to identify and investigate unfairly priced products that are now in high demand, such as protective masks and hand sanitizer.”

Amazon said when it finds violations of its policies, it is taking swift action, including suspending or terminating a seller’s account. They are then being referred to law enforcement agencies for prosecution.

“Law enforcement is critical to combating bad actors and protecting our customers,” Amazon said. “In most cases, state attorneys general are on the front lines of these efforts. Amazon is eager to partner with—and has proactively reached out to—every state attorney general in the country. We are actively collaborating with attorneys general in more than ten states, and with numerous federal prosecutors, as they work to investigate and prosecute alleged price gougers.”

Shares of Amazon stock were up 1.09% as of 11:49 a.m. EDT on Tuesday.