USPS Investigating Amazon.com

by Jordan Yerman | February 6, 2009 at 09:18 am
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Amazon.com is under investigation by the US Postal Service, but neither Amazon nor the USPS won't disclose what they're investigating.

The third paragraph on page 67 of Amazon.com's annual income filing says, "In January 2009, we learned that the United States Postal Service, including the Postal Service Office of Inspector General, is investigating our compliance with Postal Service rules, and we are cooperating."
Peter Rendina, a Washington, D.C.-based spokesman for the U.S. Postal Inspection Service, said in an interview Tuesday the investigation is "ongoing," but declined to provide details. Some, however, are pointing to the internet retailer's use of bulk mail or media mail services as a possible focus.

One theory, espoused by scanned-mail startup Earth Class Mail's Ron Wiener, is that the USPS is seeking revenue leakage:
Wiener said it's plausible that the investigation has something to do with the postal service's manifest mailing system for bulk shipments.

"While it's hard to imagine that Amazon would do anything inaccurate, because they are accuracy freaks, it's possible that if they're doing fulfillment for smaller resellers, it's hard for Amazon to know if the weight calculations are correct," Wiener said.
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jeff_golden

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Shippou

I had my Wall-e book in this box~

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Jennings David L

Interesting that the investigation would be buried on page 67 of a incoming filing statement.  I will be interested to see how this develops.

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First Flagged at 10:25 AM, Feb 6, 2009 by Marisa Olivia
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