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Amazon Defends Its Use of Data to Congress

Photo Credit: Zhao ! via Flickr cc

In response to questions from the House Antitrust Subcommittee, Amazon admitted that it does use third-party seller data to help create its own private label brands. However, the retailer specified that the data it uses is not from any single third-party seller, but rather comes from transactions involving all third-party sellers, as well as Amazon’s own first-party sales. This kind of data it called “aggregated.” Amazon’s use of third-party sellers’ data seems to be a key issue for antitrust investigators.

“Just like other stores, Amazon uses public and aggregated data from its stores to identify categories and products with high customer demand over a given time period,” Amazon wrote in its response…

Read the full story at CNBC.