For two decades, Amazon.com has compared its current selling price to an often illusory “list price” — a price often set by the manufacturer that few if any retailers actually charge. This comparison made consumers believe they were getting a great deal and saving a bundle. We have shown you in the past how often grossly exaggerated list prices at Amazon made a bad problem worse.
More recently, on April 1 this year, Amazon advertised a memory module claiming a whopping 65% savings.
According to CamelCamelCamel which tracks Amazon’s prices, Amazon never charged that list price of the memory module. And it has been two years since prices for that item even approached the list price.
The New York Times now reports that Amazon has finally had a change of heart, and is dropping list price comparison for as much as 70% of their inventory. Here for example is that same memory module as of last week, with no savings claims made.
Why is Amazon dropping list price comparisons? Many retailers have been the subject of recent class action lawsuits alleging that customers were deceived by these false price comparisons, and they have been awarded millions of dollars. The question is will Amazon’s sales be affected because there are no savings claims? Remember what happened to J.C. Penney when their new president decided to play it straight and drop phony sales? Their revenue plummeted.