The Federal Court of Appeal has upheld a decision keeping the competition commissioner from getting access to Amazon AMZN-Q data it hoped would help prove the company hosts fake reviews on its website.
A decision issued by the court recently dismisses an appeal the competition watchdog argued last year in hopes of advancing an investigation into Amazon’s marketing practices.
In issuing the dismissal, a trio of Appeal Court judges ruled, “the Federal Court did not make a reviewable error when it declined to order” Amazon to turn over data.
The data the commissioner has wanted since June 2024 was transaction information for health, personal care, home and electronic items sold on Amazon’s platforms.
We must do something about these fake Amazon reviews
The data was meant to help the commissioner prove Amazon permits reviews of items purchased by product vendors to remain on its website.
The company fought the request, claiming the data sought was “exceedingly broad, excessive, and unnecessarily burdensome” because there are billions of products offered across all those categories.
Eventually, the Federal Court found Amazon was likely to have the information the commissioner wants but ruled in the company’s favour because the watchdog had inadequately justified the scope of its request.
When the competition commissioner appealed the decision, it suggested the Federal Court erred in how it used part of the Competition Act and evidence from Amazon to make its decision. The Appeal Court ultimately disagreed with the commissioner’s view.
Amazon spokesperson Julia Lawless said in an email that the company agrees with the court’s decision and will continue to engage with the commissioner about the firm’s “long-standing commitment to fighting fake or improperly incentivized reviews, both in Canada and globally.”
She added the company has invested “significant” sums into machine-learning models, expert investigators and legal action aimed at stopping incentivized reviews.
Meanwhile, the Competition Bureau — the body overseen by the competition commissioner — said it accepts the decision of the appeal court but remains “disappointed with the result.”
“We will take time to carefully review the ruling and assess our next steps,” spokesperson Marianne Blondin said in an email. “The bureau’s investigation into Amazon’s marketing practices is ongoing.”
Its battle against Amazon began under former competition commissioner Matthew Boswell. He left the post last year and Jeanne Pratt became acting commissioner.
Under Boswell, the Competition Bureau also won access to Amazon records prepared for senior management that delve into how star ratings, Amazon’s Choice badges and bestseller labels are applied.