Pricing violations are becoming more prominent in the retail industry and they’re taking a toll on relationships between not only brands and consumers, but marketplaces, sellers and manufacturers as well. A new report from ORIS Intelligence has found that U.S. brands experience 27.7% in pricing violations, on average. Third-party sellers on Amazon, for example, are undercutting Minimum Advertised Price (MAP) by 13%.
During Amazon Prime Day this year, new pricing violations increased by 313% compared to the two weeks prior, ORIS reported. In total across all online channels there were 51% more new violations compared to the previous two weeks.
The ORIS Intelligence Report examines quarterly trends in pricing inconsistencies and violations in MAP policies. Other key findings included:
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- U.S. manufacturers that are committed to enforcing MAP see their percentage of MAP violations drop significantly — some as low as below 5%.
- Pricing violations occur every day and are evenly distributed among weekdays and weekends.
“Pricing inconsistencies can kill a brand and topple seller relationships for manufacturers, so we are committed to helping them navigate the complexities of the evolving world of online selling,” said Pamela Springer, CEO of ORIS Intelligence in a statement. “We start by making data integrity our number one priority, because without that, it’s impossible to protect brand integrity.”
