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Amazon sued by FTC, 22 states over advertising practices
NBC News • • business
Key Points:
- The U.S. Federal Trade Commission (FTC) filed a lawsuit against Amazon, alleging the company illegally raised advertising prices by secretly increasing the minimum bid required to place ads, costing advertisers over $20 billion.
- The FTC, supported by 22 states, claims Amazon inflated auction prices without advertiser knowledge, generating billions in profits at their expense and seeks civil penalties and recovery of damages.
- Amazon denied the allegations, stating its advertising pricing remained stable from 2019 to 2024 and emphasized its commitment to offering consumers low prices and relevant ads.
- The lawsuit follows Amazon's recent $2.5 billion settlement with the FTC over previous allegations of deceptive practices related to Prime subscriptions.
- Following the news, Amazon's stock price dropped approximately 3% in afternoon trading.
