Topline
The Federal Trade Commission revenge a awesome suit against Amazon connected Monday, accusing the e-commerce elephantine of utilizing deceptive prices for advertisers.
The Amazon logo is displayed connected a motion extracurricular of a distribution halfway connected May 3, 2025 successful San Diego, California.
Photo by Kevin Carter/Getty Images
Key Facts
The lawsuit, which was first reported by the Wall Street Journal, alleges Amazon secretly raised the minimum value advertisers had to salary to spot ads for their products.
The suit involves complete 20 authorities lawyer generals and covers a seven-year model successful which Amazon generated tens of billions of dollars.
Amazon shares tumbled aft the study was published and were down 2.7% astir 3:40 p.m. EDT, falling beneath the $260 mark.
Forbes has reached retired to the FTC and Amazon for comment.
Big Number
Over $20 billion. That is really overmuch money the FTC has accused Amazon of illegally gaining from “unwitting advertizing customers.”
What To Watch For
It is unclear really overmuch money successful damages the FTC and states attorneys wide are seeking from Amazon. Pennsylvania Attorney General Dave Sunday said successful a statement his agency is “hopeful” the suit will supply restitution payments to the businesses Amazon allegedly deceived.
What States Are Involved In The Lawsuit?
Attorneys wide from Alaska, Arizona, California, Colorado, Florida, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Nebraska, New Jersey, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Vermont, and Washington person joined the lawsuit. Of the attorneys wide involved, 11 are Republican and 10 are Democrats.
Key Background
Monday’s ineligible action against Amazon comes conscionable 2 weeks aft the e-commerce elephantine settled allegations for $2.2 cardinal that it violated the Fair Credit Reporting Act. Prosecutors accused Amazon of failing to supply personality theft victims pinch petition transaction records involving alleged perpetrators of the theft. Less than a twelvemonth ago, Amazon logged its largest colony of each time, agreeing to fork complete $2.5 billion aft the FTC accused it of utilizing deceptive methods to motion group up for Prime subscriptions, arsenic good arsenic allegedly making it difficult to cancel the integer plans. Amazon agreed to salary a $1 cardinal civilian punishment and $1.5 cardinal successful refunds backmost to consumers.
Further Reading
Amazon Reaches Record $2.5 Billion Settlement With FTC Over ‘Deceptive’ Prime Tactics (Forbes)
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