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        <title><![CDATA[States ask big tech to step up vigilance against online price-gouging]]></title>
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        <link>https://usagag.com/2020/03/25/states-ask-big-tech-to-step-up-vigilance-against-online-price-gouging/</link>
        <lastBuildDate>Wed, 25 Mar 2020 19:12:37 +0000</lastBuildDate>
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            <media:title type="html">States ask big tech to step up vigilance against online price-gouging</media:title>
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        <content:encoded><![CDATA[<p>A group of 32 US states have a message for the nation’s leading online platforms: You are not doing enough to stop price gouging amid the coronavirus crisis.</p><p>In a letter sent on Wednesday to Amazon, Walmart, Facebook and eBay, a bipartisan group of US attorneys general outlined specific steps it wants the online platforms to take to end this practice.</p><p>Pennsylvania’s Josh Shapiro is leading the effort along with attorneys general from the states of Connecticut, Vermont and New Mexico.</p><p>The steps include triggering price-gouging protections prior to emergency declarations in a state, being proactive in setting policies and restrictions on sellers instead of playing catch up and creating a “fair pricing” page where consumers can report incidents.</p><p>“They should use their data and analytics tools to stop price spikes, not play whack-a-mole when they find something on their platform…We are seeing them handle this on a case-by-case basis, which is really not practical,” Shapiro told Reuters in an interview.</p><p>The companies did not immediately respond to requests for comment.</p><p>Shapiro said his office has received approximately 2,900 tips of price gouging on online platforms and brick-and-mortar stores in the past eight to nine days and issued 90 cease-and-desist orders to sellers engaged in the activity. He said if these orders fail to deter merchants, his office can fine them up to $10,000 per violation.</p><p>The issue of price-gouging on online platforms <strong>has become a hot topic</strong> among law enforcement agencies, officials and lawmakers as panicked consumers look to stock up on essential items during the outbreak.</p><p>It also reflects the intense pressure online platforms are under to protect consumers while delivering goods during a pandemic.</p><p>Earlier this week, Amazon said it had removed 3,900 seller accounts <strong>involved in this activity</strong>. In early March, the company said it is working with state attorneys general to identify and prosecute third-party sellers.</p><p>A report by the US Public Interest Research Group released March 11, found nearly 1 in 6 of the products sold directly by Amazon had its price spike 50 percent higher than the 90-day average.</p><p>“Even new protections by your company including heightened monitoring, bans on certain advertisements, and bans on selling certain items, have failed to remove unconscionably priced critical supplies,” the letter said.</p>]]></content:encoded>
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