Friday, January 18, 2008

Amazon Fined for Viciously Offering Free Shipping

If I walked to a bookstore then I wouldn't be paying for shipping. Should I pay more for the book when I got there? A strange law.


Amazon.com has run afoul of a French law that basically makes free shipping a crime. On Monday it said it will continue to ship books for free in France and take a €1000 (or nearly $1500 at the time of this writing) a day fine.
The Lang Law (81-766 August 10, 1981) says that the selling price of books must be indicated by the editor on the cover, and that any retailer is required to sell the work at a price ranging between 95% and 100% of that price. This system is designed to prevent independent booksellers from being forced out of business by large discounters (just look at how many independent booksellers have gone out of business in the United States).
Last month a union of French bookstores sued - and won - over the free shipping on orders over €20. The argument was the free shipping effectively lowered the price of books outside of the Lang Law limits. The union was awarded €100,000 and Amazon.com was ordered to start charging for shipping.

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