Amid growing concerns over potential antitrust actions and an upcoming meeting with the FTC, Amazon is taking a significant step to downsize its private-label offerings. The Wall Street Journal has reported that Amazon will phase out a substantial majority of its clothing brands, dropping 27 out of 30, and will discontinue all private-label furniture lines, including the Rivet and Stone & Beam brands.

Amazon will, however, retain its flagship brands, Amazon Basics & Essentials

The move comes as the e-commerce giant is trying to focus on products that connect with customers. Matt Taddy, VP of Amazon Private Brands, explained, “We always make decisions based on what our customers want,” emphasizing their commitment to value and quality with the flagship brands like Amazon Basics and Amazon Essentials.

Amazon

Interestingly, three of Amazon’s clothing labels – Essentials, Collection, and Amazon Aware, will remain. While the company has not explicitly linked this retraction to the anticipated FTC lawsuit, the correlation seems more than mere coincidence. Amazon representatives are scheduled to meet with FTC chair Lina Khan and commissioners Rebecca Kelly Slaughter and Alvaro Bedoya next week in a discussion viewed as a last-ditch attempt to forestall legal proceedings. The meeting follows a four-year investigation into Amazon’s alleged anti-competitive behavior, with a separate lawsuit also underway concerning misleading Prime subscriptions.

At the core of FTC’s interest lies Amazon’s engagement with third-party sellers. Reports from 2020 revealed that the company used internal data about these sellers to create in-house products, which led to a decision to cease promoting its in-house brands in search results. This reflects a new era for the retail giant. The coming weeks are likely to reveal more about the implications of this move and how it aligns with the broader legal landscape for Amazon.

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