CMA Launches Investigations into Amazon and Shein Over Misleading Tactics
What happened
The Competition and Markets Authority launched investigations into Amazon and Shein regarding misleading business tactics. Consumer watchdog Which? identified both retailers using online prompts recognized as pressure tactics, such as countdown deals and low stock alerts. For example, a lightning deal on Amazon Marketplace did not reset its countdown clock over five days, and Shein repeatedly extended flash sale countdowns.
From independent.co.uk
Why it matters
The CMA is investigating both Amazon and Shein over concerns that their use of countdown clocks could mislead shoppers. These actions relate to market tactics and operations of both companies. Regulatory action could impact the core business operations of both Amazon and Shein.
From independent.co.uk
Who's involved
- SheinChinese-Singaporean online fashion retailer under investigation by the CMA
- Competition and Markets AuthorityUnited Kingdom government body conducting investigations into misleading business tactics
- AmazonAmerican multinational technology company under investigation by the CMA
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- H&M may gain ground as CMA probes Shein's misleading tacticsH&M may benefit if CMA curbs Shein's aggressive marketing tacticsPossible
- CMA probe into Amazon tactics may shift market advantage to WalmartRegulatory pressure may reduce Amazon's competitive advantage, benefiting rival WalmartPossible
- CMA investigation could force Amazon Marketplace to change deal tacticsAmazon Marketplace may face operational changes due to CMA investigation into misleading tacticsPossible
Keep exploring
The entities involved
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Shein
Chinese-Singaporean online fashion retailer
Nothing else this week.
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Competition and Markets Authority
United Kingdom government non-ministerial department
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Amazon
American multinational technology company
Related events
- Former Amazon boss appointed as interim chair of the Competition and Markets Authority.
- FTC alleges Amazon used deceptive dark patterns in its business practices.
- Amazon faces market competition from large e-commerce platforms affecting book sales.
- Amazon made a disclosure filing to the Securities and Exchange Commission.
- Flipkart and Amazon are competing in the e-commerce market.