Amazon Faces FTC Suit
Amazon may face a US FTC lawsuit over alleged misleading of advertisers, potentially resulting in billions in penalties, as part of an ongoing probe into ad practices.
Key points
- The US Federal Trade Commission (FTC) is investigating Amazon and Alphabet's Google over alleged misleading of advertisers.
- The probe focuses on whether Amazon and Google properly disclosed terms and pricing for ads, including 'reserve pricing' for search ads.
- The FTC is seeking details about Amazon's advertising auctions and may wrap up the probe with a lawsuit or settlement as soon as this summer.
- Amazon previously agreed to pay $2.5 billion in fines and reimbursements to settle FTC allegations of deceiving customers to generate subscriptions.
- Several state attorneys general are participating in the investigation, which is being conducted by the FTC's consumer protection unit.
The US Federal Trade Commission (FTC) is investigating Amazon and Alphabet's Google over alleged misleading of advertisers. The probe, which is being conducted by the FTC's consumer protection unit, focuses on whether Amazon and Google properly disclosed terms and pricing for ads, including 'reserve pricing' for search ads. Amazon may face a lawsuit that could result in civil penalties, with the agency seeking details about Amazon's advertising auctions. The investigation is part of a broader effort to regulate the online advertising industry. The FTC declined to comment, while Amazon did not immediately respond to requests for comment.
Sources
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