Amazon Sued by FTC Over Alleged Ad Price Gouging
The US Federal Trade Commission (FTC) and 22 states have sued Amazon.com Inc. over allegations that the e-commerce giant systematically overcharged advertisers for years.
The FTC and state attorneys general claim that Amazon gave advertisers inadequate disclosures around the pricing and terms of its 'sponsored' listings, which appear as top products when users search on the company's marketplace.
The suit alleges that since 2019, Amazon has 'secretly and systematically overcharged' 1.2 million advertising customers through its Sponsored Products, Sponsored Brands, and Sponsored Display ads.
In response to the lawsuit, Amazon stated that it had properly disclosed its pricing and auctions to advertisers and that the FTC's claims were based on a misunderstanding of how its advertising auctions work.