Amazon faces FTC suit claiming it misled advertisers on pricing

Skip to Content News Archives Economy Energy Oil & Gas Renewables Electric Vehicles Mining Commodities Agriculture Real Estate Mortgages Mortgage Rates Finance Banking Insurance Fintech Cryptocurrency Work Wealth Smart Money Wealth Management Investor Personal Finance Family Finance Retirement Taxes High Net Worth FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials More Innovation Information Technology FP500 Podcasts Small Business Lives Told Tails Told Shopping Financial Post Store Obituaries Place a Notice Advertising Advertising With Us Advertising Solutions Postmedia Ad Manager Sponsorship Requests Classifieds Place a Classifieds ad Working Profile Settings My Subscriptions My Offers Newsletters Customer Service FAQ News Economy Energy Mining Real Estate Finance Work Wealth Investor FP Comment Executive Women Puzzmo Newsletters Financial Times Business Essentials This advertisement has not loaded yet, but your article continues below.HomeNewsE-Commerce SolutionsAmazon faces FTC suit claiming it misled advertisers on pricingA suit would mark the latest legal clash between Amazon and the FTCAuthor of the article:Josh Sisco, Erik Larson and Spencer SoperLast year, Amazon agreed to pay US$2.5 billion to resolve a different FTC probe over its Prime subscription practices. Photo by Cheng Xin/Getty ImagesThe United States Federal Trade Commission is preparing to sue e-commerce giant Amazon.com Inc. over claims the company misled advertisers on prices, according to a person familiar with the matter.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountA group of U.S. states is also set to join the potential lawsuit, said the person, who asked not to be identified discussing the regulatory matter.The FTC, which enforces antitrust and consumer laws, and multiple state attorneys general had been probing claims that Amazon had been misleading advertising clients. A possible lawsuit could lead to billions of dollars in civil penalties, Bloomberg reported in June.The probe, which ramped up last year and is run by the agency’s consumer protection unit, focuses in part on whether Amazon properly disclosed the terms and pricing related to its ads, Bloomberg previously reported. The ads, sometimes known as “sponsored listings” or “sponsored ads,” appear as the top products when they search Amazon’s marketplace, the report said. An enforcement action was expected as soon as this summer.Breaking business news, incisive views, must-reads and market signals. Weekdays by 9 a.m.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Posthaste will soon be in your inbox.We encountered an issue signing you up. Please try againThe lawsuit may be filed as soon as Monday, according to the person.In an emailed statement, Amazon said FTC investigators misrepresented how its advertising auctions work and presented no evidence of harm to shoppers. Amazon advertising auctions prioritize products relevant to shopper search terms before considering bid amounts, which helps shoppers find what they want and keeps prices down for advertisers, the company said. The average cost-per-click for Amazon search ads remained flat when adjusted for inflation from 2019 to 2024 while advertising performance increased, the company said.An FTC representative didn’t immediately respond to a request for comment.A suit would mark the latest legal clash between Amazon and the FTC, which has been looking into many aspects of the company’s business since at least 2019. Last year, Amazon agreed to pay US$2.5 billion to resolve a different probe over its Prime subscription practices. And a trial is slated for early next year over claims that Amazon is illegally monopolizing online retail markets and degrading quality for shoppers and overcharging sellers.The Wall Street Journal earlier reported the FTC planned to file the suit Monday.We apologize, but this video has failed to load.This advertisement has not loaded yet.Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.