FTC Investigates Advertising Practices of Amazon and Google

Core Insights - The Federal Trade Commission (FTC) is investigating the advertising practices of Amazon and Google, focusing on whether they properly disclosed terms and pricing for ads [1][2]. Group 1: FTC Investigations - The FTC's investigation into Google is centered on whether the company increased ad costs without proper disclosure to advertisers [3]. - In the case of Amazon, the FTC is examining the company's real-time ad auctions and whether it disclosed "reserve pricing" or price floors for those ads [4]. Group 2: Legal Context - Amazon is currently facing a lawsuit from the FTC, alleging that it used "dark patterns" to mislead customers into signing up for Prime subscriptions, making cancellation difficult [5]. - Google has previously faced legal challenges, including a lawsuit from the Justice Department that found it operates an illegal monopoly in online advertising [5]. - The European Commission recently fined Google €2.95 billion for abusing its dominant position in the online advertising technology market [6][7].