The Federal Trade Commission (FTC) is preparing to sue e-commerce giant Amazon.com for allegations that the company misled advertisers regarding prices, according to a person familiar with the matter. A group of U.S. states is also expected to join the potential lawsuit, the source stated, asking not to be identified due to the regulatory nature of the issue.
The FTC, responsible for enforcing antitrust and consumer protection laws, along with several state attorneys general, had been investigating allegations that Amazon was deceiving its advertising clients. A potential lawsuit could result in billions of dollars in civil fines, Bloomberg reported in June.
The investigation, intensified last year and conducted by the agency's consumer protection division, focuses in part on whether Amazon adequately disclosed the terms and pricing policies related to its advertising services.
