The Federal Trade Commission (FTC) is investigating allegations that Amazon misleads customers about its prices and discounts, Reuters reported.
The probe comes as part of a review of the company’s proposed merger with Whole Foods.
The FTC’s probe is reportedly the result of a complaint brought forth by Consumer Watchdog, an advocacy group. In the group’s analysis of 1,000 products on the website, it found that 61 percent of the time, the reference or list price that Amazon used to show consumers how much money they were saving increased in a 90-day period.
After the agency reviewed the letter, it reportedly began an informal inquiry into the online retailer, according to Reuters. The FTC did not immediately return The Hill’s request for comment on the matter.
Amazon told Reuters in statement that the Consumer Watchdog study is “deeply flawed.”
"We validate the reference prices provided by manufacturers, vendors and sellers against actual prices recently found across Amazon and other retailers."
Lawmakers such as Sen. Cory Booker (D-N.J.) and Rep. David Cicilline (D-R.I.) have called for scrutiny in Amazon’s deal with Whole Foods. But the two have warned of the deal's impact on jobs and the potential for anticompetitive behavior, not deceptive pricing practices.