eBay and Amazon Marketplace are failing to crack down on a spate of coronavirus-profiteering by sellers, according to the consumer group Which?
Its investigation uncovered a wide range of products for sale on marketplaces with inflated prices.
At the start of this month, the Competition and Markets Authority (CMA) warned that traders should not be exploiting the coronavirus outbreak to take advantage of people through price gouging, and threatened to take strong action if the problem persisted.
However, Which? found that third-party sellers are still “brazenly ripping-off consumers” and using the current situation to list overpriced items that are difficult or impossible to find in local shops.
The watchdog’s investigation found consistent overpricing of household items, including cleaning products, thermometers, baby formula and tampons – products that are all currently in particularly high demand during the coronavirus outbreak.
There were hundreds of active listings and auctions for overpriced items, including a £40 thermometer priced at £300 on eBay and £150 on Amazon. A £3 bottle of disinfectant was on sale for £29.99 on eBay – a markup of up to 1,000% – and was more than three times the recommended price on Amazon.
Meanwhile, on eBay’s auction site, a flurry of bids sent the price for a bundle of three bottles of Dettol spray and three packets of antibacterial wipes soaring to £210.
Which? also found that consumers were actually buying these overpriced products from eBay, despite the extortionate prices. For some listings taken down during the investigation, eBay showed that multiple items had already been purchased before the listing could be removed.
The research is said to have also demonstrated a failure of ‘filters’ and other checks put in place by eBay and Amazon to adequately protect consumers, despite both having stated publicly that they have taken action on the issue.
When Which? asked eBay on 9 March what action it was taking to protect customers from price gouging on antibacterial gel, it said it had filters in place to prevent the listing of these items. But these listings continue reappearing, suggesting the systems in place are not working effectively.
Amazon seems to be having more success, with a number of active listings disappearing during Which?’s investigation. However, more are still appearing.
Which? has called on eBay and Amazon to take more effective action against third-party sellers trying to take advantage of consumers at this difficult time. It said that online marketplaces should be bringing in far stricter controls to identify and prevent these practices.
If they fall short, Which? suggested that the CMA’s new coronavirus taskforce needs to take action. The CMA has already engaged with the big platforms to find out more about what they’re doing to address the issue of retailers on their sites charging high prices for essential items.
Given the exceptional circumstances brought about by coronavirus, Which? said the government should consider how it will work with the retail sector as a whole to tackle irresponsible price-hiking. This means bringing together businesses, including supermarkets and online marketplaces, as well as Trading Standards and the CMA – to agree how to keep essential items, that should be accessible to all, at reasonable prices.
NAM Implications:
- In the current climate, enemies will be made…
- …enemies with long memories…
- …enemies with access to social media ‘tell-a-friend’* capabilities…
- …like never before.
- *NB please me, and I tell one friend…
- Disappoint me and make that ten…
- Give me access to social media, and make that thousands+
- Of all organisations, Amazon and eBay know that more than most…
