Back in 2020, a Report of the Wall Street Journal disclosed that Amazon employees often use data collected from third-party sellers to launch products that compete for the company’s private label business. The US Congress investigated the e-commerce giant for that activity, and according to Journalalso Securities and Exchange Commission. Apparently, the SEC is looking into how Amazon discloses its business practices, including how its employees use data for private label.
Equal Journal note, the SEC is responsible for regulating how publicly traded companies communicate with their investors. It may impose fines and other enforcement actions against them if it is found that they have failed to disclose important business information to investors in a timely manner. As part of the investigation, which is believed to have been going on for more than a year, the SEC requested emails and other communications from several senior Amazon executives.
After the initial report from Journal Amazon denies it uses third-party seller data to launch competing products. It conducted an internal investigation into its private label division, but it declined to provide Congress with a copy of its results. Last month, the House Judiciary Committee asked the Justice Department to open another investigation into Amazon over a impede possible crime.
The commission said at the time that the company refused to turn over business documents and communications “to conceal the truth about its use of third-party seller data to its advantage.” private-label operations and the inclusion of private-label products in search results.” As you’d expect, an Amazon spokesperson denied that was the case, referring to the “massive volume of information.” [the company has] has provided more than several years of good faith cooperation with this investigation. “
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