Amazon suspends 3,900 sellers for coronavirus-related price gouging

Amazon announced that it has suspended more than 3,900 selling accounts in its U.S. store for "violating our fair pricing policies."

As coronavirus fears began to spread in early March, the company said it was investigating. The retail giant also said it has removed more than half a million items from its stores because of "coronavirus-based price gouging," about half the amount it had previously said it removed in response to price extorting or false claims. 

When the outbreak began, Amazon said they are investigating the claims that sellers were raising the prices to make a profit off the pandemic.

"We began taking these enforcement actions promptly upon discovering this kind of misconduct, and we've been partnering directly with law enforcement agencies to combat price gougers and hold them accountable," Amazon said in the post.

Amazon said it has "zero tolerance" for price gouging and plans on combating the problem by monitoring stores 24.7 through automated and manual means.

"Amazon is humbled by the trust our customers have placed in us during this difficult time," the company said in a statement. "We are fully committed to protecting their interests and rising to the challenges posed by COVID-19."

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Despite Amazon's earlier calls to curb gouging, it appeared the problem persisted and not just from third-party sellers.

According to a report by the U.S. Public Interest Research Group released March 11, nearly 1 in 6 of the products sold directly by Amazon had prices spike 50% higher than the 90-day average. 

Amazon reinforced its claim that it "has proactively reached out to every state attorney general in the country" to ensure bad actors were being held accountable. 

Although the post did not mention Amazon's own pricing changes, it added its platform "strictly prohibits sellers from exploiting an emergency by charging extremely high prices on products and shipping" and that it is "issuing regular reminders to our sellers about these long-lasting policies."

Amazon has informed U.S. warehouse workers that the company will be temporarily doubling their overtime pay amid a flood of orders from people hunkered down during the coronavirus pandemic.