The SEC would investigate Amazon for its use of data from third-party sellers

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In 2020, a Wall Street Journal report revealed that Amazon employees routinely used data collected from third-party sellers to pitch competing products for the company’s private label business. The US Congress is already investigating this practice by the e-commerce giant and, according to The newspaperso is the Security and Exchange Commission. Apparently, the SEC is investigating how Amazon disclosed its business practices, including how its employees used the data for its private labels.

As The newspaper note, the SEC is responsible for regulating how publicly traded companies communicate with their investors. It can impose fines and other enforcement actions on them if it finds that they have failed to disclose material business information to investors in a timely manner. As part of the investigation, which is believed to have been ongoing for more than a year now, the SEC has requested emails and other communications from several senior Amazon executives.

After the original report of The newspaper came out, Amazon denied using data from third-party sellers to launch competing products. It launched an internal investigation into its MDD division, but refused to provide Congress with a copy of its findings. Last month, the House Judiciary Committee asked the Justice Department to launch another investigation into Amazon over a possible criminal obstruction.

The committee said at the time that the company had refused to turn over commercial documents and communications “to conceal the truth about its use of third-party seller data to benefit its private label business and product preference.” private label in search results.” As you’d expect, an Amazon spokesperson denied that was the case and referred to “the enormous volume of information [the company has] provided over several years of good faith cooperation in this investigation.”

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