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.
122 Articles
122 Articles
arkansasadvocate.com
Feds and 22 states sue Amazon, alleging deceptive advertising scheme
The Federal Trade Commission and attorneys general from 22 states sued Amazon Monday, claiming the online retail company used artificial bids to inflate costs for advertisers, bringing in tens of billions of dollars. The complaint alleges that Amazon used an “invented auction participant” to drive up prices for advertising placements and sponsored product spots on […]
U.S. FTC Files Complaint Against Amazon, Alleging Inflated Ad Bids… Amazon Claims "Misunderstanding"
(San Francisco = Yonhap News) Correspondent Kwon Young-jeon = The U.S. Federal Trade Commission (FTC)... alleging that Amazon, the world's largest e-commerce company, unfairly obtained advertising fee revenue...
Amazon has "secretly and systematically overbilled" its 1.2 million advertiser customers "by manipulating auctions", says the complaint filed by the US consumer protection authority and 22 states.
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