Amazon Fires Workers in Seller Scam Crackdown

Amazon.com reportedly fired workers in the U.S. and India for allegedly giving internal data to independent sellers linked to scams. Following an investigation into suspected bribes, the e-commerce giant took action against disreputable sellers by limiting access to data and deleting thousands of suspicious reviews, The Wall Street Journal reported Monday. Part of the probe is centered on India, which is suspected to be a major source of data misuse, the paper noted, citing an unnamed source. Some of those workers (as well as others in China) have apparently had their ability to search the company's internal database limited and can no longer download data via USB ports.

Total Retail's Take: With the intense competition on Amazon's marketplace, access to internal data and systems can prove valuable to disreputable sellers. They're using this information and freedom to falsely flag products as fake as well as infringe upon product trademarks, weakening their competition in the process. Amazon has done the right thing and quickly taken action to remove employees that provided internal data, as well as penalize sellers by limiting their access to data and deleting thousands of suspicious reviews, and in more extreme cases terminating their selling accounts and withholding funds. Maintaing a fair and safe marketplace for sellers is critical to the continued growth of Amazon's platform. Therefore, the online retailer must be proactive in policing both its employees and sellers to ensure everyone is competing on a level playing field.