“If you’re a consumer, you know it’s not fair to pay a service like DropShipping more than it’s fair to drop them,” said Michael Molloy, who is leading the FTC’s push to outlaw shippers from the Internet.
“If somebody is trying to make money from a product they’re selling on the Internet, you’re going to find it a little hard to do.”
The FTC says DropShippers and others such as shippers who ship to retail locations, which are typically located outside of brick-and-mortar retail outlets, can’t be held accountable for price increases.
The FTC has been in the process of trying to ban shippers for months.
The agency, which began investigating DropShipper in July, said it is working with companies like Amazon, eBay, eBay and Amazon Prime to get the industry to address the problem.
Amazon declined to comment on the FTC case.
But it’s a company that has faced criticism for its service, which charges a premium for a limited amount of products and services.
The company has been fighting the FTC on the issue for more than a year.
In December, Amazon and other companies announced they were expanding their services to other retailers.
It is unclear whether that move will have an impact on DropShakers.
But Mollow said Amazon is one of the largest DropSharers, and its online shopping platform is the primary source of DropShipping revenue.
“There are many more companies that have their own platforms and they’re going after DropShoppers as well,” he said.
“So it’s going to be difficult for them to keep the pressure on Amazon, which is a big concern.”
The agency is also trying to prevent DropShipting from sending customers to Amazon Prime.
In the FTC filing, it notes that DropShipped customers can’t buy products from Amazon directly.
The filing also says DropShares are prohibited from selling directly to consumers and from offering discounts on items purchased from Amazon.
Amazon has not commented.
FTC officials said they were looking for ways to hold shippers accountable.
“The industry needs to come together and stop this abuse of power,” said Molloys.
The dropshipping industry is in the midst of a transformation as online shopping continues to expand.
Companies like DropShares have become the dominant player in the industry.
They have a market share of nearly 25% in the online shopping market.
Many online retailers have begun to offer direct-to-consumer sales.
But the FTC has proposed that all DropShaters, regardless of how they are listed, must be subject to similar regulations as retailers.
The complaint filed Thursday seeks to prohibit DropShaypings from making deceptive claims about their services and products, and from selling them to consumers at a rate that is lower than the retail price.
The companies would also have to offer consumers the option to return their products to the DropSharing marketplace and pay the difference.
Mollions said it’s important to note that DropShares and other shippings are not illegal.
However, the FTC is concerned that companies like DropShare are making more money off of consumers and using their services.
“DropShippers, like online sellers, are trying to profit off of consumer confusion, misperceptions, and misunderstanding,” Mollys said.