contract-law
Is it unlawful to benefit from discounts on customer accounts without the customer knowing?
<p>The question has to do specifically with Amazon AWS services but maybe the question can be more generalized as in the title. Also, the jurisdiction is Japan but I imagine the practice described below could be carried out anywhere.</p>
<p>We are using <a href="https://docs.aws.amazon.com/AWSEC2/latest/UserGuide/concepts.html" rel="nofollow noreferrer">AWS EC2</a> services, which is sort of like renting virtualized servers on the cloud, through a 3rd party vendor. We recently found out that the vendor was applying <a href="https://docs.aws.amazon.com/savingsplans/latest/userguide/what-is-savings-plans.html" rel="nofollow noreferrer">Savings Plans</a>, which are cost discounts you receive in exchange for long term commitments to use AWS services, and other cost saving methods to our account without our knowledge. What this means is that due to the Savings Plans, etc. the actual cost of AWS services is lower. However, in the monthly billing from the vendor we are charged the full amount (no discounts), and the vendor pockets all the cost savings. Over the last year from this practice the vendor has been able to make extra tens of thousands of dollars.</p>
<p>The point of contention here is not that we are being overcharged or that the billing is incorrect. We are being billed what we initially agreed to, which I guess is the &quot;full price&quot;. The issue is that there is nothing in the contract that states that the vendor can benefit from discounts on AWS services that we, not the vendor, are using and paying for. In addition, we did not even know about the existence of Savings Plans and other cost saving measures and there was no explanation from the vendor, and so it could be said that the vendor willingly benefited from our ignorance. (The vendor claims that they explained about AWS cost saving measures but nobody at the office I work with remembers any such explanation).</p>
<p>So is there anything unlawful here? Is there any legal recourse? Or is this just lawful, albeit yucky, behavior?</p>

<p>You have a contract with the 3rd party vendor. The 3rd party vendor has a contract with Amazon. These two contracts are not related in any way.</p>
