Software

Why does the ecommerce industry not want the FTC to step in?

The Federal Trade Commission is investigating ecommerce businesses over claims that they’ve been overcharging consumers for products they’ve never bought. 

According to a report from The Wall Street Journal, the FTC is looking into a case where an ecommerce business allegedly misidentified a woman who needed a pair of sunglasses after shopping at an online retailer, and charged her for them after discovering she didn’t have them. 

The FTC says it received an inquiry from the retailer in December 2015, asking whether the customer could get the glasses from a different seller. 

“The customer was unaware of the mistake and had not received the product from the previous seller,” the FTC said in the report. 

 The company in question was a reseller, and the customer had purchased the sunglasses in January 2016. 

On Friday, the company sent an email to the FTC outlining the mistake, and offering to resolve the matter. 

In the email, the email says the customer was contacted by a customer service representative, who explained that the glasses had been listed on the website for sale for $9.95, but the customer didn’t actually own them.

The customer was refunded for the mistake.

The FTC did not respond to a request for comment. 

But the FTC’s complaint also points to a different ecommerce store, which the FTC says misidentified its customers as being from an eCommerce business. 

This is where things get interesting. 

As part of its investigation, the commission is looking at whether the two ecommerce stores are violating the FTC Act, a 1994 law that sets up a process for the commission to investigate potential violations. 

While the law requires the FTC “to establish a procedure for initiating, investigating, and enforcing” a complaint, the Commission has not formally opened an investigation. 

Instead, it has decided to open an investigation into the company itself, rather than the business that misidentified the customer. 

And while the FTC has taken some steps to combat online fraud and other scams, it is still in the midst of the investigation into this case. 

To date, the investigation has focused on the case of a retailer that was identified by a consumer service representative as mislabeling a customer as a former customer.

That company has since been closed down. 

Last year, the U.S. FTC issued a report that found ecommerce companies were “failing to maintain customer relationships” and had a “lack of respect for the privacy of their customers.”