The SEC is reportedly investigating Amazon over its use of third-party seller data

The Wall Street Journal reported in 2020 that Amazon employees used data from third-party sellers to launch competing products. According to The Journal, the Securities and Exchange Commission and the US Congress are looking into that practice. Apparently, the SEC is looking into how Amazon disclosed its business practices, including how its employees used data for its private-label brands.

The SEC regulates how publicly traded companies communicate with their investors. If it finds that they failed to disclose important business information to investors in a timely manner, it can impose fines and other enforcement actions against them. The SEC asked for emails and other communications from several senior Amazon executives as part of the probe.

The Journal reported that Amazon uses third-party seller data to launch competing products. It refused to give Congress a copy of the results of the internal investigation. The House Judiciary Committee asked the Department of Justice to investigate Amazon over a possible criminal obstruction.

The committee said that the company refused to turn over documents and communications to cover up its use of third-party sellers data to advantage its private-label business and its preferenceencing of private-label products in search results.