Paxton, FTC Sue Amazon, Allege Hidden Ad Fees Cost Businesses Billions
The short version
- Paxton filed the Texas case under the Texas Deceptive Trade Practices Act.
- The FTC and 22 […] The post Paxton, FTC Sue Amazon, Allege Hidden Ad Fees Cost Businesses Billions appeared first on Dallas Express .
The story
Texas Attorney General Ken Paxton (R-Texas) filed one lawsuit Monday against Amazon, while the Federal Trade Commission and 22 states filed a separate federal case over allegations that the company misled advertisers about how it priced digital advertising auctions. Paxton filed the Texas case under the Texas Deceptive Trade Practices Act. The FTC and 22 […]
The post Paxton, FTC Sue Amazon, Allege Hidden Ad Fees Cost Businesses Billions appeared first on Dallas Express.
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The Story At A Glance
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- • Texas Attorney General Ken Paxton and the FTC filed lawsuits against Amazon for allegedly misleading advertisers.
- • Amazon is accused of using undisclosed pricing mechanisms to inflate digital advertising auction costs.
- • Estimates suggest these hidden fees may have extracted over $20 billion from small and medium businesses.
Amazon has turned its advertising business into a massive profit center by charging sellers for visibility. The lawsuits allege the company misrepresented its auction processes starting around 2018.
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