6 indicted over Amazon bribery
WASHINGTON (AFP) — US prosecutors on Friday said six people have been indicted on criminal charges for bribing Amazon workers to restock blocked goods or help beat competitors in its online marketplace
Those charged in the case served as consultants for third-party sellers on Amazon Marketplace, paying employees and contractors at the e-commerce giant for favors or intelligence in a scheme dating back to at least 2017, according to the Department of Justice.
Advantages gained by paying bribes included extra shelf space in distribution centers.
“Realizing they could not compete on a level playing field, the subjects turned to bribery and fraud in order to gain the upper hand,” FBI Seattle bureau special agent in charge Raymond Duda said in a release.
“What’s equally concerning, not only did they attempt to increase sales of their own products, but sought to damage and discredit their competitors.”
Advantages gained by paying bribes included extra shelf space in distribution centers; inside data they could use against rivals; and reinstatement of accounts blocked or suspended for rule breaking, according to the indictment.
Reinstated products included dietary supplements suspended because of safety complaints; household electronics that had been flagged as flammable, and consumer goods removed for intellectual-property violations, prosecutors said.
“Corrupted” employees at Amazon did things such as manually reinstate product listings and approve baseless merchant appeals, according to the indictment.
Fraudulently reinstated products and merchants went on to generate more than $100 million in sales in total revenue, prosecutors said.
“Amazon has systems in place to detect suspicious behavior by sellers or employees, and teams in place to investigate and stop prohibited activity,” the e-commerce giant said in reply to an AFP inquiry.