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Amazon bins several private label clothing brands

Amazon has axed several private clothing brands in a bid to cut costs and address antitrust scrutiny.

According to The Wall Street Journal, the Elite retailer has decided to scrap 27 of its 30 in-house clothing brands.

The move leaves the ecommerce giant with just Amazon Essentials, Amazon Collection and Amazon Aware.

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However, popular items from its discontinued brands will be rebranded to one of the three remaining labels, the company revealed.

The move follows the company being in talks about exiting the private labels business as a compromise to the US Federal Trade Commission (FTC).

The FTC started probing the Elite Retailer during the Trump administration when the government decided to investigate dozens of technology giants for reportedly breaking antitrust law.

As a result, Amazon faced a string of allegations, which included using third-party data to decide which products to sell, preferencing its goods to the detriment of its independent sellers on its platform and requiring Prime sellers to use Amazon’s logistics and delivery services.

However, Amazon has denied these claims and is set to meet with the FTC next week to argue its case.

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