Small UK traders can now undercut Amazon following OFT intervention

Online giant drops its Marketplace price parity policy allowing sellers to set their own prices.
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Amazon has reached an agreement to scrap a clause banning third party traders from undercutting its prices elsewhere, following an intervention from the Office of Fair Trading.

The Guardian reports that third party traders are currently forced to charge the same amount on any other platform as they do on Amazon, but independent and rival websites can now undercut it.

OFT launched a formal investigation into the price policy last October following numerous complaints. Amazon's clause meant that trades could not sell a product including delivery, for a lower price on its own website or another site.

The OFT has now welcomed Amazon's decision to drop the clause.

Cavendish Elithorn, OFT's senior director of goods and consumer, told reporters: "We welcome Amazon's decision to end its Marketplace price parity policy across the EU.

"We are pleased that sellers are now completely free to set their prices as they wish, as this encourages price competition and ensures consumers can get the best possible deals."


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