Source: Search Engine Roundtable by barry@rustybrick.com (Barry Schwartz). Read the original article
TL;DR Summary of FTC Investigates Google and Amazon Over Ad Pricing Transparency
The Federal Trade Commission (FTC) is investigating Google and Amazon for potentially misleading advertisers by not fully disclosing ad terms and pricing. The probe focuses on automated search ad auctions and whether reserve pricing and internal pricing changes were properly revealed. This scrutiny reflects heightened regulatory attention on major tech firms under current FTC leadership. The investigation remains ongoing with details still emerging.
Optimixed’s Overview: FTC’s Deepening Probe into Ad Auction Transparency at Google and Amazon
Background on the Investigation
The FTC has launched an inquiry into the advertising practices of two tech giants, Google and Amazon. The investigation centers on whether these companies have adequately disclosed critical information about how ad pricing and auctions work on their platforms.
Key Areas of Concern
- Google: Uses automated auctions that occur in milliseconds to sell search ads, including potentially on third-party sites. The FTC is examining Google’s internal pricing methods and whether price increases were transparent to advertisers.
- Amazon: Hosts real-time auctions for sponsored product listings. The FTC is investigating if Amazon properly disclosed its reserve pricing—minimum bids required for ads to appear.
Implications for Advertisers and the Tech Industry
This probe highlights growing regulatory scrutiny over how large technology companies manage ad auctions and pricing transparency. Advertisers rely on clear information to make informed decisions, and any lack of disclosure could impact trust and market fairness. The continuing investigation underscores the FTC’s commitment to oversight under Chair Andrew Ferguson’s direction.
