SEC Investigates Amazon Over Use of Third-Party Sellers’ Data

The SEC is also investigating Amazon for its use of third-party seller data.

In 2020, a Wall Street Journal article reported that Amazon employees frequently used data collected by third-party sellers to launch competing Amazon-branded products. The US Congress is already investigating the practice, and the Securities and Exchange Commission (SEC) has decided to do the same today, according to The Journal. The SEC appears to be interested in exactly how Amazon disclosed these same practices, including how its employees used the data for their own brands.

The SEC is also investigating Amazon

As noted by The Journal, the SEC, in particular, is responsible for regulating how companies listed on the stock exchange communicate with their investors. He can then impose fines and other measures on them if he finds that such and such a company failed to communicate important information to its investors in a timely manner. As part of an investigation that reportedly began more than a year ago, the SEC requested emails and other contact materials from various Amazon executives.

regarding the use of third party data

After the original magazine article was published, Amazon denied using third-party seller data to launch competing products. The giant launched an internal investigation into the division responsible for its brand, 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 for possible obstruction of justice.

The committee then said the company refused to provide documents and communications “in order to cover up the truth about the use of third-party sellers’ data to promote their own brand and further promote their products in search results.”As expected, a Bellevue spokesman denied all these allegations and recalled “the vast amount of information provided in recent years as evidence of good cooperation in the context of this investigation.”