Bloomberg News has revealed that Amazon is at risk of facing a lawsuit from the U.S. Federal Trade Commission, potentially resulting in significant civil penalties.
Bloomberg sources indicate that Amazon is under scrutiny by the FTC as part of a broader investigation, which involves multiple state attorneys general in their inquiry.
Related ↗Toyoda wins shareholder approval to remain chairman and Kon takes over as CEO.Amazon is facing scrutiny over potential deceptive practices in online ad placements, with the agency probing claims of misleading advertisers since last year.
Amazon is under scrutiny from the FTC's consumer protection team regarding ad disclosures, specifically with regards to its partnership with Alphabet.
Read next ↗India's TCS to take $70 million hit after US Supreme Court rejects appealAmazon is facing scrutiny over its advertising practices, with the FTC inquiring about the company's auction dynamics and transparency regarding "reserve pricing", a mechanism that sets a minimum bid threshold for certain search ads.
Bloomberg reports that the agency's investigation into Amazon is likely to conclude by this summer via either litigation or a negotiated agreement.
Amazon's response was awaited after being reached out to but the FTC remained silent on the matter.
Amazon has reached a settlement with the FTC, committing to a $2.5 billion payout in September, which includes both fines and reimbursement for affected Prime subscribers nationwide.
Amazon.com News has revealed that Amazon is at risk of facing a lawsuit from the U.S. Federal Trade Commission, potentially resulting in significant civil penalties.

