According to the latest report, U.S. federal securities regulators are investigating how Amazon.com Inc disclosed certain details of its business practices, including how it used third-party seller data in its private-label business, people familiar with the matter said.
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The U.S. Securities and Exchange Commission (SEC) is investigating how Amazon handled the disclosures that its employees used seller data on its e-commerce platform. Amazon is the largest e-commerce retailer and cloud computing company in the United States.
Moreover, SEC enforcement asked several Amazon executives for emails and communications, people familiar with the matter said. Amazon declined to comment.
In April 2020, sources cited internal documents and interviews with former Amazon employees and found that the company’s employees often use the personal data of third-party sellers to develop products for their own brands.
An Amazon spokesman denied that it had ever taken such action, echoing a claim by Amazon’s lawyers in congressional testimony a year ago that the company “did not use their personal data in its decision to launch a private brand.”
