FTC Investigates Ad Pricing Disclosures at Google and Amazon

The US Federal Trade Commission (FTC) has initiated investigations into Amazon and Alphabet’s Google, focusing on whether the ad pricing disclosures of both companies were handled properly, according to Luis Rijo of PPC Land. 

The probes, launched September 12, 2025, examine transparency in advertising auctions and pricing disclosures, particularly around Amazon’s reserve pricing and Google’s internal cost adjustments. The FTC’s consumer protection unit is leading the effort, which adds to ongoing regulatory challenges facing the two technology giants.

For Amazon, regulators are scrutinizing whether reserve prices, the minimum costs advertisers must meet for search placements, were sufficiently disclosed. Google’s practices are under review for potential undisclosed increases in advertiser costs. These investigations run parallel to broader enforcement actions. Amazon faces an FTC lawsuit over allegedly deceptive Prime enrollment and cancellation processes, while the Department of Justice (DOJ) pursues structural remedies against Google following findings of illegal monopolization in digital advertising markets.

Industry groups, including Digital Content Next, have emphasized the significance of these cases, particularly in light of upcoming trials. Former executives and independent reporting have further highlighted alleged manipulation schemes within Google’s ad operations, raising questions about systemic opacity in programmatic markets.

Both companies have recently introduced transparency reports in accordance with the European Union’s Digital Markets Act, but regulators continue to press for more comprehensive disclosure. 

Regulators are expanding their focus on ad pricing disclosures and transparency obligations. The upcoming September 22 trials will test how courts address complex advertising practices and may set precedents for stricter disclosure requirements across digital platforms.