The Adam Smith Institute's Head of Digital Policy, Charlotte Bowyer, argues against further regulatory protections for sellers in the CityAM Forum.
Charlotte Bowyer, a digital policy researcher at the Adam Smith Institute, says No.
The RepricerExpress pricing glitch is a devastating and expensive error, but fortunately a rare one. Certainly, an hour’s glitch affecting third-party Amazon software is not enough to warrant new seller protection.
Ultimately, RepricerExpress customers voluntarily agreed to their terms of service, which state that vendors are liable for losses.
While outsourcing can reduce costs, it presents risks – especially when used for both pricing and fulfilment.
Requiring firms to insure against every hypothetical disaster would be prohibitively expensive. Increasing seller protections beyond the market level would reduce the choice and functionality of vendor software, while significantly raising the cost of these tools.
The best regulation here is reputation. Amazon has already gone beyond its obligations, averting a PR disaster by cancelling orders and protecting vendor feedback.
And if people no longer trust a service or disagree with its terms, they don’t have to use it.
Read the full article here.