Amazon is sued again for alleged advertising fraud

Amazon is being sued by a union for advertising fraud.

It is not uncommon for Amazon to be sued. Recently, it was sued by a union for failing to disclose advertisements in search results and allegedly defrauding millions of consumers.

The complaint, filed by the Strategic Organizing Center (SOC), a coalition of four unions representing 4 million workers across a variety of industries, claims that Amazon violated federal disclosure rules that require visual identification of ads in search. “ SOC found evidence that Amazon disregarded this FTC rule and, in addition , intentionally confused consumers by delaying the loading of ad labels by several seconds , ” the SOC document states .

The SOC analyzed search results for approximately 130,000 products and claimed that the vast majority of ads could not be distinguished from natural search results , so it questioned the Amazon platform. Amazon's subsequent response stated that the complaint misrepresented the FTC's rules and that the Amazon platform was in full compliance with the regulations, and that the ads also contained obvious "sponsored" labels.

Amazon also stated, "We designed our platform to help customers discover the products we think will best meet their needs, and advertising is one of the ways we do that."

Advertising is an important source of revenue for Amazon. If Amazon fails to distinguish between advertisements, it may indeed be suspected of defrauding consumers. The FTC has not commented on this matter, and the subsequent results remain to be seen.

In addition to this allegation, the SOC also released a report last month on Amazon's operations during the epidemic, which stated that Amazon prioritized maximizing profits while vigorously resisting government monitoring of the compliance of its operations with the epidemic.

Amazon's struggle with the unions continues. In recent years, Amazon has faced numerous lawsuits and accusations, such as employment issues, tax fees, antitrust and other issues. Most of the complaints were for infringement of employee rights, such as improper epidemic prevention and control, unfair treatment, and failure to consider employee health. As a result, there have been many strikes of varying sizes.

As a representative of e-commerce giants, Amazon has also been involved in many controversies, and all aspects still need to be strictly regulated.

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