WASHINGTON — The Federal Trade Commission this week sued Amazon over its Sponsored Ads auction practices, escalating a case that traces back to the agency’s Lina Khan-era investigation into Amazon’s acquisition of iRobot.
“This lawsuit is a case in search of a problem,” said Amy Bos, Vice President of Government Affairs at NetChoice.
“The FTC has not shown any demonstrable harm to consumers, yet it is spending taxpayer resources chasing a technical dispute instead of addressing the affordability problems Americans actually care about. This is exactly the kind of ideological enforcement voters have told us they want regulators to move past.”
Amazon’s own response makes clear the company made a good-faith effort to keep its advertisers informed, reviewing and updating educational materials about its auction system as it evolved. Simplifying explanations for customers and correcting them when they become outdated is standard business practice. Nowhere in the FTC’s complaint is there a demonstration that any of this raised prices for the consumers the agency claims to be protecting.
NetChoice’s own polling found that 72% of Americans want regulators focused on lowering prices, not punishing successful companies — a sentiment that held firm across party lines. Lawsuits like this one send the opposite signal: that the FTC would rather relitigate a years-old grievance against a single company than address the cost-of-living concerns voters are actually raising.
Read more about the lawsuit here. Read Amazon’s response here.
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