Amazon gave no black businesses the Black Owned Business badge – technical error?
Amazon has come under scrutiny for awarding “small business” and “Black-owned business” badges to companies that did not meet the requirements for either, according to a recent report by online platform, The Information.
The badges were launched as part of Amazon’s initiatives to increase consumer trust and make the platform more “merchant-friendly.” When challenged about the mislabeling, Amazon removed some badges from certain sellers but not all.
The report highlights that the “small business badge” was intended for US companies with fewer than 100 employees and less than $50 million in annual revenue. However, some businesses, such as Black Rifle Coffee Co., received the badge despite generating over $300 million in revenue last year. Similarly, Chomps, a jerky seller, obtained the Black-owned business badge despite its owners not being of Black origin.
Critics have accused Amazon of being negligent in managing the program and disadvantaging genuine small businesses. Jason Boyce, the CEO of Avenue7Media, stated that Amazon was not effectively managing the program, and Stacey Mitchell, co-director of the Institute for Local Self-Reliance, suggested that Amazon may be promoting the idea of supporting small businesses to mask its competition with them.
