Amazon’s predatory tactic to exploit brick-and-mortar stores as showrooms with an app that promises added discounts for buying from Amazon while in a store has drawn fire from the Retail Industry Leaders Assoc. and other retail associations.
Amazon’s “Price Check” app offers customers an additional 5% discount up to $5 off Amazon’s price on up to three qualifying products in eligible categories, including electronics, toys, music, sporting goods and DVDs. Amazon anticipates the Dec. 10 offer will be one of its biggest days of the year for Price Check.
Katherine Lugar, RILA’s executive VP of public affairs, said Amazon’s exploitation of a pre-Intenet tax loophole is resulting in a 6%-10% perceived price advantage over the competitors on Main Street.
“Amazon’s aggressive promotion of its Price Check App shows the lengths they are willing to go to exploit this tax loophole and is a stark reminder of why Congress needs to act to protect retailers on Main Street,” she said. “A failure to act is an implicit endorsement of a subsidy of Amazon, a subsidy that distorts the free market and puts jobs on Main Street at risk.”
CBA has joined RILA, ABA, and other associations in supporting bipartisan congressional legislation that would require Internet-only retailers like Amazon to collect and remit local sales and use taxes that brick-and-mortar retailers are forced to pay. The Main Street Fairness Act sets up a national system that streamlines collection and payment of local taxes.
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