The Federal Trade Commission is weighing a lawsuit against Amazon over allegations that the company misled advertisers, according to Bloomberg. The potential case is notable in scale: sources told Bloomberg it could seek billions of dollars in civil penalties.
The action would not be a solo federal effort. According to Bloomberg, multiple state attorneys general are involved, suggesting a broad, coordinated legal push against the e-commerce and cloud giant.
Details on the specific nature of the alleged deception — what advertisers were told, and how Amazon's actual practices may have differed — were not disclosed in the initial reports.
Amazon has built one of the fastest-growing digital advertising businesses in the world, now competing directly with Google and Meta for ad dollars from brands that sell on its platform and beyond. Advertisers rely on Amazon's data and reporting tools to decide where to spend, making any alleged manipulation of that information a serious trust issue for the industry.
If the FTC moves forward and prevails, a multi-billion-dollar penalty would rank among the largest ever imposed on a tech company for advertising practices — and could force Amazon to overhaul how it reports results to the brands that fund a significant portion of its revenue.