Amazon.com recently disclosed that it had settled a mysterious investigation by the U.S. Postal Service for a “nominal amount.” Amazon never revealed what the investigation was about, and didn’t specify the terms of the settlement. But now the details are coming to light.

In response to a Freedom of Information Act request by TechFlash, the Postal Service released its settlement agreement with Amazon. According to the document, the Postal Service contends that Amazon “improperly mailed products,” mainly from the video game category, from Jan. 1, 2006 to Jan. 31, 2009 and owes additional postage. Amazon disputes that contention but paid $1.5 million to the Postal Service to settle the matter. The two parties settled to “avoid the delay, uncertainty, inconvenience and expense of protracted litigation,” the agreement states.

full story from TechFlash