Amazon could face billions in fines as the FTC eyes its ad business
Amazon’s advertising business has become its quiet money machine. It may also be its next big regulatory headache.
The US Federal Trade Commission has drafted a potential complaint accusing Amazon of misleading advertisers, a case that could lead to billions of dollars in civil penalties, Bloomberg reported on 16 June, citing people familiar with the matter.
No complaint has been filed. The FTC and Amazon both declined to comment, and the report rests on anonymous sources, so it is best read as a signal of where the regulator is heading rather than a done deal.
What the FTC is actually looking at
The investigation centres on whether Amazon properly disclosed the terms and pricing of its ads, the ‘sponsored listings’ that sit at the top of search results when you look for a product.
The specific concern is ‘reserve pricing’, the price floors advertisers have to clear before they can...
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