Amazon faces a potential U.S. Federal Trade Commission (FTC) lawsuit for allegedly misleading advertisers. The legal action threatens the company with billions of dollars in civil penalties.
The FTC drafted the complaint following an investigation supported by multiple state attorneys general. Regulators are scrutinizing Amazon’s ad auctions and the disclosure of reserve pricing for sponsored listings.
The probe alleges Amazon failed to adequately disclose minimum prices required for ad placements. A lawsuit or settlement could arrive as early as this summer.