The FTC and states have criticized Amazon policies they claim discourage third-party sellers from offering lower prices on other platforms by penalizing them through degraded search results on Amazon. They also allege that third-party sellers are required to use Amazon’s costly logistics services to obtain “prime” eligibility, crucial for success but more expensive than selling on other platforms.
In Thursday’s filing, the FTC and states noted there is nothing inherently problematic about using Signal, but a company’s choice to use the app does not alter its document preservation obligations during an enforcement action or government investigation. They seek Amazon’s preservation notices and instructions to determine whether Amazon adequately and timely instructed its employees to preserve Signal messages, which is relevant to the legal standard for spoliation.
Additionally, both Amazon and the FTC opposed a motion to intervene in the case from the American Booksellers Association (ABA). The FTC and states argue that the ABA’s claims, while potentially legitimate, differ from the current enforcement action and could complicate and delay proceedings.
