When is a discount not a discount? Amazon has a new rule on coupon pricing to make sure customers are getting real savings from coupon offers. Beginning next week, products must have a sales history in order to be eligible for a coupon – and they must have a promotion price lower than either the “was price” or the recent lowest price.
While Amazon didn’t cite the Federal Trade Commission (FTC), the government agency has rules against deceptive pricing practices, such as “former price comparisons.” The FTC states that if a “former price” being advertised is fictitious – for example, where an artificial, inflated price was established for the purpose of enabling the subsequent offer of a large reduction – then the “bargain” being advertised is a false one. “The “reduced” price is, in reality, probably just the seller’s regular price,” according to the FTC.
Amazon explained its new coupon policy in a post on the seller announcement board on Monday:
“Starting March 12, 2024, coupons will be subject to new pricing requirements as we continue to improve the coupons experience to build customer trust and, in turn, an even better selling experience for you.
“Coupons are still required to have a discount percentage between the minimum (5% off) and maximum (50% off). Products will also be required to have a sales history before they are eligible to run, and a promotion price lower than either the “was price” or the recent lowest price.
“If a product’s price or discount doesn’t meet these requirements, it won’t be eligible for a coupon until all requirements have been met. If you receive a coupon error message, you can take the following actions:
“Price history issue: To make this product eligible, create a sales history by selling more products to build the “was price.” For more information on how the “was price” is calculated, go to Amazon policy on reference prices.
“Increase discount: Make sure your promotion price is lower than the “was price” or the recent lowest price to make this product eligible.
“Minimum/maximum discount issue: Update your sale price discount percentage to be between the minimum (5% off) and maximum (50% off) to make this product eligible.
“To learn more about coupon pricing requirements and error messages, go to Understanding coupon errors.”
Reaction to the new policy was mixed. One seller felt Amazon was using another way to force sellers to sell below cost, while another said they thought there were too many scammers pretending a product is on sale when it is not.
One seller reminded colleagues about the redemption fee for coupons – Amazon charges a 60-cent fee when shoppers redeem a coupon – regardless of whether they actually buy the item.
