Explainer: S.2992 Prohibits Amazon From Favoring Prime Over Non-Prime Offers

Amazon Prime subscribers expect to compare products in search results, where a Prime badge
means that Amazon guarantees free delivery by the promised date. For a product to be eligible for
Prime, a marketplace seller needs to use Amazon’s fulfillment services and provide inventory to
Amazon’s distribution network.

In the example below, the first seller cannot display the Prime badge since they are not using
Amazon’s fulfillment services, although that seller is promising free shipping with 7-day delivery.
Prime subscribers often look for the Prime badge to ensure faster free delivery by Amazon.

But Amazon may not favor Prime offers from Amazon or from marketplace sellers, since that favors
sellers who use Amazon’s fulfillment services. That is unlawful conduct under S. 2992, Section 2.