FTC sues Amazon, accusing the e-commerce giant of misleading advertisers
The complaint says Amazon used hidden surcharges and auction changes to overcharge more than 1 million advertisers and generate tens of billions of dollars in revenue.
- On Monday, the Federal Trade Commission and 22 states sued Amazon in federal court, alleging the company secretly inflated prices in its online search advertising auctions.
- The lawsuit alleges Amazon raised minimum ad prices through undisclosed surcharges applied over seven years, affecting more than 1 million brands and sellers required to advertise on the platform.
- "The impact can be staggering," FTC Chairman Andrew N. Ferguson said, noting that Amazon misled millions of advertising customers and higher costs were largely passed on to American consumers.
- Following the announcement, Amazon shares fell 3% in afternoon trading, while the lawsuit seeks civil penalties and potential recovery of billions of dollars in harm.
- The FTC settled a prior case against Amazon for $2.5 billion last year over deceptive Prime subscription practices, reflecting intensified regulatory scrutiny of the retailer's business operations.
379 Articles
379 Articles
Lawsuit Claims Amazon Secretly Inflated Ad Prices For More Than Seven Years - The BayNet
BALTIMORE – Attorney General Anthony G. Brown, 21 other attorneys general, and the Federal Trade Commission (FTC) filed suit against Amazon, alleging that the company engaged in deceptive and unfair practices that secretly inflated prices in its online search advertising auctions. The complaint,filed in the U.S. District Court for the Western District of Washington,alleges that, for over seven years, Amazon has covertly and substantially increa…
FTC Files Lawsuit Against Amazon Alleging Deception of Advertisers
The Federal Trade Commission (FTC) and a bipartisan group of 22 states filed a lawsuit against Amazon on Monday, Aug. 31. The complaint filed Monday alleges that the company secretly overcharged more than one million advertising customers by manipulating the online auctions used to set ad prices. The complaint, filed in the U.S. District Court for the Western District of Washington, claims the alleged scheme has likely netted the company $20 bil…
The e-commerce giant rejected the allegations and called the FTC’s claim “wrong”
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