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| Amazon is accused of lying to Congress |
Five members of the US House of Representatives Justice Committee wrote to the CEO of Amazon, accusing the company's managers, including founder Jeff Bezos, of reporting to Congress potentially misleading or disinformation about the company's business practices.
The letter also stated that the committee is considering referring the case to the Ministry of Justice for criminal investigation.
This letter was issued to Amazon CEO Andy Gacy (Andy Gacy) last week after a Reuters investigation found that the company was running a systematic campaign in India to copy products and fake search results in order to sell promotional brands.
The company denied participating in such acts. However, the letter noted that reliable reports in the Reuters investigation and articles published recently by several other media outlets directly contradict statements made by Amazon executives, including former CEO Jeff Bezos (Jeff Bezos).
"At best, these reports confirm that Amazon officials misled the commission," the letter reads. At worst, it appears they may lie to Congress in violation of federal criminal law.
In response, an Amazon spokesperson released a statement saying, "Amazon and its executives did not mislead the committee.
He added, "As noted, our internal policies go beyond the policies of any other retailer we know of. Our policy prohibits the use of seller data to develop our own branded products. We are investigating allegations of potential violations of this policy and are taking appropriate action."
The House Judiciary Committee has been investigating competition in the digital marketplace since 2019. This includes how Amazon uses seller ownership data on its platform and whether the company is unfairly advertising its products.
Reuters is investigating the basis of internal Amazon documents
It was tested before the Judiciary Committee's Antitrust Subcommittee last year. Bezos said the company has prevented its employees from using supplier data for the benefit of its product line.
At another hearing in 2019, the company's deputy general counsel, Nate Sutton, said it would not use this data to create its own branded products or modify search results in its favour.
To answer a question during its 2019 congressional hearing, Amazon is reviewing its algorithm to direct consumers toward its own products. Sutton replied: The algorithm is optimized in a way that predicts what customers want to buy regardless of the seller.
The legislature's speech gave Gacy the last opportunity to present evidence to support the company's statements and past statements. He also noted that it is illegal to intentionally distort or cover up the truth or to provide false documents in response to Congressional requests.