Amazon and Bezos land in hot water as US lawmakers accuse them of lying to Congress

By Monica Athnasious

Published Oct 18, 2021 at 02:05 PM

Reading time: 2 minutes

23609

Last week, an in-depth report by Reuters exposed swathes of documents that unveiled Amazon’s systematic tactic of making knock-off products and rigging search results in India—practices the shopping giant has denied engaging in. Now, five members belonging to the US House of Judiciary Committee wrote a letter addressed to the company’s CEO, Andy Jassy, on Sunday 17 October 2021. The letter by the lawmakers accuses Amazon’s top executives, including the company’s founder Jeff Bezos, of lying or, at the very least, misleading Congress on its business practices.

The letter goes even further to suggest its consideration of “a referral of this matter to the Department of Justice for criminal investigation is appropriate,” citing Reuters’ “credible reporting” that “directly contradicts the sworn testimony and representations of Amazon’s top executives—including former CEO Jeffrey Bezos.” The lawmaker’s letter, reviewed by Reuters, continued, “At best, this reporting confirms that Amazon’s representatives misled the Committee. At worst, it demonstrates that they have lied to Congress in possible violation of federal criminal law.”

Reuters’ report detailed thousands of internal Amazon documents that clearly showed the company is aware of what goes on behind the scenes, whereby knock-off products are created (through gathering data on individual sellers) and search engine results in India are shamelessly rigged so that its own products appear “in the first two or three… search results”—thereby boosting its production in the country. The scheme was allegedly reviewed by at least two of the company’s senior executives. The evidence cited and found by Reuters in this investigation contradicts the previous testimonies from the e-commerce giant.

In 2020, Bezos testified before the Judiciary Committee’s antitrust subcommittee stating that Amazon prohibits the gathering of data on other sellers for the company’s advantage. Another testimony came from Amazon’s associate general counsel Nate Sutton in a 2019 congressional hearing, where he denied the usage of data to create its own branded content and in response to valid questions about its ‘rigged’ algorithm stated, “The algorithms are optimised to predict what customers want to buy regardless of the seller.”

In response to the letter and accusations of allegedly lying, an Amazon spokesperson submitted a statement, “Amazon and its executives did not mislead the committee, and we have denied and sought to correct the record on the inaccurate media articles in question.” It continued, “As we have previously stated, we have an internal policy, which goes beyond that of any other retailer’s policy that we’re aware of, that prohibits the use of individual seller data to develop Amazon private label products. We investigate any allegations that this policy may have been violated and take appropriate action.”

The letter from the US Judiciary Committee offers CEO Jassy a “final opportunity” to present articles of evidence that verify Amazon’s testimonies while also requesting access to the documents unveiled in Reuters’ in-depth report. A sworn response must also be made by the CEO by 1 November 2021, “We strongly encourage you to make use of this opportunity to correct the record and provide the Committee with sworn, truthful and accurate responses to this request as we consider whether a referral of this matter to the Department of Justice for criminal investigation is appropriate,” the letter explains.

Keep On Reading

By Eliza Frost

Millie Bobby Brown reportedly accuses Stranger Things co-star David Harbour of harassment and bullying 

By Eliza Frost

Hailey Bieber just listed all the beauty treatments she swears by

By Eliza Frost

Misinformation spread by wellness influencers online is leading to falling contraceptive pill use

By Eliza Frost

Are you in Group 7? Explaining the latest viral TikTok trend

By Eliza Frost

The Life of a Showgirl or The Life of a Tradwife? Unpicking Taylor Swift’s new album

By Eliza Frost

Controversial American Apparel owner just opened LA Apparel in NYC and TikTok girlies are flocking to shop

By Eliza Frost

Did Katy Perry just confirm relationship with ex-Canadian PM Justin Trudeau?

By Eliza Frost

Bad Bunny is not touring the US due to fear of ICE raids at concerts

By Eliza Frost

Online pornography showing choking to be made illegal, says government 

By Eliza Frost

What is dry begging? And why is it a relationship red flag?

By Eliza Frost

What is Shrekking? The latest toxic dating trend explained 

By Eliza Frost

Vogue has declared boyfriends embarrassing, and the internet agrees

By Eliza Frost

Kendall Jenner reveals plans to quit Kardashian fame for a normal job

By Eliza Frost

Jennifer Lawrence weighs in on The Summer I Turned Pretty love triangle, revealing she is Team Jeremiah

By Eliza Frost

Zohran Mamdani wins New York City mayoral race, and wife Rama Duwaji becomes city’s Gen Z first lady 

By Eliza Frost

How The Summer I Turned Pretty licensed so much of Taylor Swift’s discography for its soundtrack 

By Eliza Frost

Bad Bunny announced as halftime act for Super Bowl 2026—and conservatives aren’t too happy 

By Eliza Frost

Rina Sawayama calls out Sabrina Carpenter’s SNL performance of Nobody’s Son for cultural insensitivity 

By Eliza Frost

Taylor Swift’s Release Party of a Showgirl is coming to cinemas everywhere, and it’s already made $15M

By Eliza Frost

NHS makes morning-after pill free at 10,000 pharmacies across England