Amazon and Google Under FTC Investigation for Ad Practices

The Federal Trade Commission's consumer protection unit is investigating Amazon and Google for allegedly failing to properly disclose the terms and pricing for ads on their websites. The FTC is examining whether Amazon disclosed price floors for advertisers and whether Google increased the cost of ads without disclosing it to advertisers. The FTC and Google declined to comment, while Amazon did not respond to a request for comment.

The US Federal Trade Commission (FTC) has launched an investigation into whether Amazon.com (AMZN.O) and Alphabet's Google (GOOGL.O) misled advertisers by failing to properly disclose terms and pricing for ads on their websites. The probe, conducted by the FTC's consumer protection unit, focuses on whether Amazon and Alphabet adequately disclosed key aspects of their advertising practices, including price floors for ads and any increases in ad costs that were not communicated to advertisers US FTC probes Google, Amazon over search advertising practices, source says^[1].

The FTC is seeking details about Amazon's advertising auctions and whether it disclosed "reserve pricing," which refers to the minimum price advertisers must accept before they can buy an ad. The agency is also examining Google's internal pricing processes and whether it increased the cost of ads in ways that were not disclosed to advertisers US FTC probes Google, Amazon over search advertising practices, source says^[1].

Both Amazon and Alphabet have declined to comment on the matter. The investigation underscores the FTC's ongoing scrutiny of the tech industry's advertising practices, aiming to ensure transparency and fairness for advertisers. As the investigation progresses, it will be crucial for both companies to provide comprehensive and accurate disclosures to maintain the trust of their advertisers.

For more information, see the Reuters article US FTC probes Google, Amazon over search advertising practices, source says^[1].