In September 2000, Amazon apologized after customers discovered that the same DVD titles were being offered at different discounts. The company said it had randomly varied discounts to study how lower prices affected sales—not to set prices using customer demographics. It called the test a mistake because shoppers were left uncertain about whether they were getting a fair deal.
What Amazon tested
Amazon’s statement said the test covered 68 DVD titles over five days, with discounts ranging from 20% to 40%. The company said it varied discounts randomly to measure how lower prices affected sales. Those details describe Amazon’s account of its test; contemporaneous reporting recorded the dispute but did not independently verify how shoppers were assigned to price groups. Amazon’s statement
| # | Preview | Product | Price | |
|---|---|---|---|---|
| 1 |
![DreamWorks 10-Movie Adventure Collection [DVD]](https://m.media-amazon.com/images/I/51fTUaDeW2L._SL160_.jpg)
|
DreamWorks 10-Movie Adventure Collection [DVD] | $29.96 | Buy on Amazon |
| 2 |
|
Michael - DVD | $17.99 | Buy on Amazon |
| 3 |
![E.T. The Extra-Terrestrial [DVD]](https://m.media-amazon.com/images/I/51eFFAvmTtL._SL160_.jpg)
|
E.T. The Extra-Terrestrial [DVD] | $5.00 | Buy on Amazon |
| 4 |
![Jurassic Park Trilogy (Jurassic Park / The Lost World: Jurassic Park / Jurassic Park III) [DVD]](https://m.media-amazon.com/images/I/51uq5cfqc2L._SL160_.jpg)
|
Jurassic Park Trilogy (Jurassic Park / The Lost World: Jurassic Park / Jurassic Park III) [DVD] | $8.99 | Buy on Amazon |
| 5 |
|
Tom Cruise 10-Movie Collection | $15.32 | Buy on Amazon |
Customers comparing notes online saw different prices for the same products. DVDTalk.com users suspected repeat customers might be paying more, and shoppers asked why someone else was getting a better deal. The Washington Post documented those concerns alongside Amazon’s assertion that the price variations were random. The Washington Post’s account
Why customers objected
For shoppers, the problem was not just the amount of a discount. If one customer saw a lower price than another for an identical DVD, it was difficult to know whether the difference reflected a routine promotion, a personal shopping history, or an experiment. Amazon CEO Jeff Bezos said the company had not planned to tell customers about the tests at first. Customers’ online comparisons brought the differences into public view, and the company acknowledged that the test had created uncertainty rather than making shopping simpler. CBS’s interview report
Windows Errors? Fix Them Before They Spread
Repair common Windows errors and clear accumulated junk for a smoother, more stable PC - no reinstall needed.Free scan · no reinstallCrashes, No Sound, or Screen Glitches?
Random freezes, missing sound and display glitches usually trace back to one bad driver. Find and replace yours safely.Free scan · under a minute#1 Best Overall
Amazon denied using demographic information to determine prices. Bezos said, “We’ve never tested and we never will test prices based on customer demographics,” and described the experiment as random. That was the company’s stated explanation, not independent proof of how the test operated. In the same statement, Bezos called the test a mistake because it undermined customer confidence. Amazon’s statement
Amazon’s apology and refunds
Amazon’s statement is dated September 26, 2000, while the release text is datelined September 27. In its public response, the company expressed regret for the test. Speaking to CBS, Bezos said, “We’re sorry we did it. We’re glad we got caught.” He also said, “Our business depends on trust. I hate it when we do something like this, because it undermines that trust.” CBS’s interview report
Rank #2
- The story of the famous Michael Jackson, known as the King of Pop.
Amazon said it had refunded 6,896 customers an average of $3.10. The company’s statement said the refunds had been made by September 14, 2000; Computerworld also reported those totals. Amazon’s statement Computerworld’s report
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What Amazon promised for any future test
Amazon said that if it ran another random price test, buyers of affected items would automatically receive the lowest price tested once the test ended. The promise addressed the gap between the discounts shoppers had initially seen: a customer who paid a higher test price would get the lower test price afterward. Amazon said it had no current plans to run another test at the time. That was a statement about the company’s plans in 2000, not evidence of its present-day pricing policy. Amazon’s statement WIRED’s report
Quick Recap
Best Value
- Tom Cruise 10 Movie Collection
- Product Type: Physical Movie
- Brand: Paramount
Rank #4
Rank #3
- Movie dvd
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
