Amazon's new 'Price Check' app angers US retailers

London, Dec 9 (ANI): Amazon has sparked off a major row with US retailers by launching a new price check app that allows shoppers to get a discount on items via the online store if they find them to be more expensive elsewhere.

The new Amazon Price Check app and promotion, which is starting from this Saturday, will allow people to perform a price check on an item in a shop, by scanning in the bar code using the app on their iPhone or Android device.

The online retail giant will then offer a five-dollar discount to shoppers who carry out this market research for it for free, on any item across the site, including the same item they wanted to buy in the first place.

The American Retail Industry Leaders' Association has issued a statement about Amazon's attempt to poach shoppers at the point of sale, The Telegraph reports.

"Retailers compete on price 365 days a year, and at no time is that competition hotter than during the make-or-break holiday shopping season. However, by continuing to evade collecting state sales taxes, Amazon's exploitation of a pre-Internet tax loophole is resulting in a 6-10 percent perceived price advantage over their competitors on Main Street," the statement said.

"Amazon's aggressive promotion of its Price Check app shows the length they are willing to go to exploit this tax loophole, and is a stark reminder of why Congress needs to act to protect retailers on Main Street. A failure to act is an implicit endorsement of a subsidy of Amazon," it added.

The row has broken out only days after James Daunt, the managing director of UK book selling retail chain Waterstone, criticised Amazon calling it a "ruthless, money-making devil".

"They never struck me as being a sort of business in the consumer's interest. They're a ruthless, money-making devil," the paper quoted Daunt, as saying.

"The computer screen is a terrible environment in which to select books. All that 'If you read this, you'll like that' it's a dismal way to recommend books. A physical bookshop in which you browse, see, hold, touch and feel books is the environment you want," he added.

According to the paper, it is expected that the same app and promotion would be rolled out around the world and affect UK retailers. (ANI)