Are there any laws that restrict pricing strategies of e-commerce businesses?
In Tennessee, e-commerce businesses are subject to the same laws as traditional brick-and-mortar retailers when it comes to pricing strategies. For example, they are prohibited from engaging in deceptive pricing practices, such as touting a “special” or “discounted” price when the item is actually sold at regular price more often. Tennessee’s Unfair Trade Practices Act prohibits businesses from using bait and switch techniques, which involve promoting one product or service at a discounted price and then pressuring customers into purchasing a more expensive product or service. This law also prohibits dealers from comparing prices of like items from different manufacturers unless it is a reasonable comparison. Furthermore, e-commerce businesses in Tennessee are prohibited from using price fixing, which involves collusion among sellers to maintain prices at an artificially high level. The Tennessee Price Taking Law also prohibits e-commerce businesses from refusing to deal with other companies if it has the effect of raising prices. Overall, e-commerce businesses in Tennessee need to make sure they are compliant with the law when it comes to pricing strategies. Failing to do so may result in legal action or fines for violating consumer protection laws.
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