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Update: Canadian Antitrust Regulator Continues Probe Into Amazon's Marketing Practices
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Update: Canadian Antitrust Regulator Continues Probe Into Amazon's Marketing Practices
Jun 12, 2024 12:00 PM

02:36 PM EDT, 06/12/2024 (MT Newswires) -- (Updates with Amazon's ( AMZN ) comments in the last two paragraphs.)

The Canadian competition watchdog said Wednesday it secured a second court order to collect information and proceed with a probe into Amazon.com's ( AMZN ) marketing practices.

The probe is linked to claims made by Amazon ( AMZN ) that "may be influenced by reviews and ratings, a factor that could affect how products are ranked and displayed on their website and mobile app," the Competition Bureau said.

The regulator is looking into whether there are concerns over the company's marketing practices under the deceptive marketing provisions of the Competition Act. There's "no conclusion of wrongdoing at this time," the Competition Bureau said.

Under the order issued by Canada's Federal Court, Amazon ( AMZN ) will have to provide records and written information deemed necessary for the investigation, the watchdog said.

The company is "collaborating with the bureau to share more about Amazon's ( AMZN ) longstanding commitment to fighting fake or improperly incentivized reviews, both in Canada and globally," a spokesperson said in an emailed statement to MT Newswires.

"Amazon ( AMZN ) has invested significant resources to proactively stop incentivized reviews using machine-learning models, expert investigators and legal action, among other tools," the spokesperson said. "Understanding that fake reviews are a global issue affecting different industries, Amazon ( AMZN ) has long welcomed greater collaboration across the private and public sector to protect customers from bad actors."

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