---
title: Amazon Pays $2 Million to Settle Reference Price Allegations
date: 2021-04-11T09:31:31-04:00
author: Import Bot
canonical_url: "https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/amazon-pays-2-million-to-settle-reference-price-allegations"
section: Blog Posts
---
# Amazon Pays $2 Million to Settle Reference Price Allegations

  April 11, 2021

 

 

 

 

 

 

Shortly after the state of California [filed a lawsuit](https://www.adlawaccess.com/2021/03/articles/no-more-deference-for-amazons-reference-prices/) against Amazon alleging deceptive prices, Amazon agreed to pay $2 million in penalties and restitution.

Under the [stipulated judgment](https://www.courthousenews.com/wp-content/uploads/2021/03/Amazon-Judgment.pdf), Amazon is restrained from using an advertised reference price based on a formula, algorithm, or other method that produces misleading or false results until April 1, 2024. Amazon cannot advertise a reference price unless it provides:

(1) a clear and conspicuous hyperlink to a clear and exact definition of the term; and,

(2) the definition includes a statement that the reference price may not be the prevailing market price or regular retail price.

Amazon is required to pay $100,00 in cy pres restitution, $1,700,000 in civil penalties, and $200,000 to the Riverside County District Attorney’s Office. Amazon’s settlement is a good indication for what state enforcers are interested in when it comes to reference prices. Under [California law](https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=BPC%C2%A7ionNum=17501.), reference prices must reflect the prevailing market price as defined within three months of the advertised prices.

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 **Tags:** [Amazon](https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/tags/amazon), [California](https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/tags/california), [Reference Pricing](https://www.kelleydrye.com/viewpoints/blogs/ad-law-access/tags/reference-pricing)

 

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