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Two States may be Probing Amazon’s Methods and Policies Regarding Third-Party Seller’s Data

Two states may be probing Amazon’s methods and policies regarding third-party seller’s data

Amazon’s services are under speculation, this time by two different states at the same time. Over the years, the company has grown into this eCommerce giant that rules the online businesses. Most people just go on to amazon and order whatever they want. One evident feature that the company provides its customers is the ability to access it on any device. They have a website, app for androids, and an app for iOS as well. Amazon has products for every basic necessity that their customers could have, but it also allows people to sell their products. The company is like a huge online retail store that has products for all of your necessities. It does not just have items and products listed under its name. It allows local small scale sellers to sell their products as well.

In recent times, the firm has been facing a lot of backlash as to how it treats its small sellers. The main claim that is being made against Amazon states that the company gathers data from the sellers and uses the same against them. Recently, the state investigators at California and Washington have been keeping a close eye on Amazon’s workings. The Wall Street Journal and The New York Times have reported that the state attorneys might be looking into how the firm treats third-party sellers.

They are especially focusing on determining what it does with the data that it collects from these sellers. According to their suspicions, Amazon has been using this data to compete with them, thus pulling their business down directly. Apart from this, the Washington attorney has also been trying to figure out whether Amazon might be making it difficult for these third-party sellers to list them on other websites.

A few months ago, sometime in April, The Wall Street Journal reported that Amazon had been collecting data from these third-party sellers. This data mostly included prices of their products, monthly sales, customer demand, and their average expense in packaging and shipping of these products. It allegedly collected this data to bring out these products under its brand name as a competitor for these sellers. After this report, Senator in the US, Josh Hawley, requested to file an antitrust report against the firm. In response to this report, the house judiciary committee asked Jeff Bezos to testify in front of congress.

While Amazon is yet to make any statements regarding this news, attorneys from California, as well as Washington, have refused from speak about the investigation, or even confirming that one is going on with the New York Times. The European Commission had already been investigating such a matter against Amazon. The commission had been closely observing the firm’s workings to determine whether or not it was using third-party seller’s data against them. According to sources, the commission will soon be filing a formal antitrust charge against them. The offices in the US might now be following in their footsteps and investigating the companies business methodologies.

Image source: Engadget

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