March 12 (Reuters) - U.S Senator Elizabeth Warren of
Massachusetts is asking Amazon ( AMZN ) CEO Andy Jazzy to
provide details on its algorithmic pricing and contracting
practices for the company's procurement platform after an
advocacy group said some schools and local governments paid more
for office supplies compared to others in nearby locations,
according to a letter seen by Reuters.
* "Instead of offering fixed prices for all buyers, which
are typical in the procurement space, Amazon Business subjects
buyers to algorithm-driven dynamic pricing that forces school
districts and local governments to pay ever-changing, often
inflated costs for essential goods," Sen. Warren said in the
letter.
* States including California and New York, along with the
U.S. Federal Trade Commission, have raised concerns about the
collection and use of personal data to determine prices
* Advocacy group Institute for Local Self-Reliance in
December released a report saying algorithmic pricing by Amazon
Business lets the company covertly raise prices.
* One city paid three times as much for a pack of Sharpies
as another nearby school district, according to the ILSR
report.
* Warren asked Amazon ( AMZN ) a dozen questions about how it
determines prices for local governments and school districts,
and its use of personal consumer data to set prices.
* Warren in February sent a letter to Amazon ( AMZN ) on behalf of
the Committee on Banking, Housing, and Urban Affairs requesting
information about tariff-induced price increases on its
e-commerce marketplace and if the company plans to decrease
prices if it receives refunds for tariff payments recently
deemed illegal by the US Supreme Court.