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FTC and 22 states sue Amazon over ad price inflation
Livemint··1 Sept
The US Federal Trade Commission and 22 states sued Amazon on Monday, alleging it secretly overcharged about 1.2 million advertising customers since 2019. The complaint filed in Seattle claims Amazon inflated prices for Sponsored Products, Sponsored Brands, and Sponsored Display auctions. The FTC estimates the conduct cost advertisers $20 billion or more. Amazon denied the allegations.
Prism
What It Means For You
- About 1.2 million Amazon advertising customers could be affected by the alleged overcharging.
- The 22 states involved may seek civil penalties and damages recovery.
- Amazon said average cost-per-click for search ads remained flat from 2019 to 2024.
What's Happening
- FTC and 22 states filed suit in Seattle federal court on August 31.
- The complaint alleges Amazon inflated Sponsored Products, Brands, and Display auction prices.
- FTC estimates advertisers lost $20 billion or more since 2019.
Amazon advertising model
- Amazon agreed to pay $2.5 billion in a separate FTC Prime subscription case last year.
- Amazon faces another major FTC antitrust trial scheduled for early next year.
- Amazon denied the advertising allegations in Monday's filing.
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