Amazon to Be Compelled to Turn Over Documents in Canada Marketing Probe — 2nd Update

OTTAWA--Canada's antitrust watchdog said on Wednesday that a federal court granted its investigators a court order to compel Amazon.com to hand over documents related to a probe focused on "potentially false or misleading claims" by the online retailer.

The Competition Bureau said its nearly three-year-old investigation is trying to determine whether Amazon's marketing practices potentially violate the country's antitrust laws as they pertain to deceptive advertising. The probe, it said, relates to claims made by Amazon "that may be influenced by reviews and ratings." This, in turn, affects how products are ranked and displayed on their website and mobile app, the bureau added.

"There is no conclusion of wrongdoing at this time," the bureau said.

An Amazon spokesperson said the Seattle-based retailer is working with Canadian authorities, citing company efforts to deter fake or improperly incentivized reviews. Amazon "has long welcomed greater collaboration across the private and public sector to protect customers from bad actors," the company said.

In August 2020, Canada's antitrust watchdog said it launched an investigation into Amazon, with an initial focus on whether it was abusing its dominant position in the retail sector. A Competition Bureau spokesman said the investigation on misleading advertising represents a separate investigation, and the market-dominance probe is continuing.

Last year, the bureau obtained a court order requiring Facebook's owner, Meta Platforms, to hand over information as part of the Amazon marketing probe. The bureau said it believed certain accounts owned by Meta Platforms - Facebook, Instagram and Threads - were used to recruit reviewers and generate positive writeups of products.

Write to Paul Vieira at paul.vieira@wsj.com

(END) Dow Jones Newswires

June 12, 2024 15:00 ET (19:00 GMT)

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