Amazon.com 2015 Annual Report Download - page 24

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14
results could be adversely affected.
In addition, we provide regulated services in certain jurisdictions because we enable customers to keep account balances
with us and transfer money to third parties, and because we provide services to third parties to facilitate payments on their
behalf. In these jurisdictions, we may be subject to requirements for licensing, regulatory inspection, bonding and capital
maintenance, the use, handling, and segregation of transferred funds, consumer disclosures, and authentication. We are also
subject to or voluntarily comply with a number of other laws and regulations relating to payments, money laundering,
international money transfers, privacy and information security, and electronic fund transfers. If we were found to be in
violation of applicable laws or regulations, we could be subject to additional requirements and civil and criminal penalties, or
forced to cease providing certain services.
We Could Be Liable for Fraudulent or Unlawful Activities of Sellers
The law relating to the liability of providers of online payment services is currently unsettled. In addition, governmental
agencies could require changes in the way this business is conducted. Under our seller programs, we may be unable to prevent
sellers from collecting payments, fraudulently or otherwise, when buyers never receive the products they ordered or when the
products received are materially different from the sellers’ descriptions. Under our A2Z Guarantee, we reimburse buyers for
payments up to certain limits in these situations, and as our marketplace seller sales grow, the cost of this program will increase
and could negatively affect our operating results. We also may be unable to prevent sellers on our sites or through other seller
sites from selling unlawful goods, selling goods in an unlawful manner, or violating the proprietary rights of others, and could
face civil or criminal liability for unlawful activities by our sellers.
Item 1B. Unresolved Staff Comments
None.