Senate Probes Possible China Manipulation in Ecommerce

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Senate Probes Possible China Manipulation in Ecommerce

Online seller Jack Nekhala told Bloomberg reporter Spencer Soper he had been approached by someone selling a service to unfreeze his suspended Amazon account by bribing an employee, according to an article published last month.

Soper published an update today, sharing on LinkedIn that “Amazon is being investigated by the US Senate’s Small Business Committee, which is worried about Chinese influence over the popular online marketplace and whose staffers have found “compelling evidence” of Amazon negligence. Republican committee staff members have been interviewing Amazon merchants and their consultants regarding the issue.”

Nekhala thanked Soper in a comment on his LinkedIn post, writing the following:

“Thank you, Spencer Soper Two years ago, I was simply trying to understand what happened to my business. I never imagined it would lead to a Bloomberg investigation and now a U.S. Senate inquiry.

“I hope this ultimately results in greater transparency, accountability, and a fair process for the millions of small businesses that depend on Amazon. Thank you for continuing to report on an issue that affects far more people than just me.”

Soper reported in today’s article that news of the probe came from Amazon sellers and consultants with whom he had spoken. One shared an email reportedly from a committee researcher who said Republican committee staff have been probing “Amazon negligence related to Chinese influence and have found compelling evidence.” Soper noted that the email didn’t cite any specific evidence of Chinese influence.

It’s important to note that Congressional investigations, while significant, are not proof of wrongdoing. It would be interesting to know if the Senate committee is investigating additional online marketplaces.

Written by 

Ina Steiner is co-founder and Editor of EcommerceBytes and has been reporting on ecommerce since 1999. She's a widely cited authority on marketplace selling and is author of "Turn eBay Data Into Dollars" (McGraw-Hill 2006). Her blog was featured in the book, "Blogging Heroes" (Wiley 2008). She is a member of the Online News Association (Sep 2005 - present) and Investigative Reporters and Editors (Mar 2006 - present). Follow her on Twitter at @ecommercebytes and send news tips to ina@ecommercebytes.com. See disclosure at EcommerceBytes.com/disclosure/.

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