Amazon.com (AMZN) - Get Report was down 3% in preopen Island trading after The Wall Street Journal reported that the Federal Trade Commission has concluded that the online retailer and its Alexa Internet unit probably made deceptive statements about privacy practices, but the company should not be penalized because the situation has been addressed.

The paper reported that a recent letter from the FTC says the company "likely" was deceptive when it said claimed that it did not keep identifiable information about users in Alexa's database of Web usage patterns.