The Federal Trade Commission and 22 states sued Amazon yesterday, alleging that it has conducted a secret scheme to overcharge advertisers for seven years.

"Since 2019, Amazon.com, Inc. has secretly and systematically overcharged its approximately 1.2 million advertising customers by manipulating the 'auctions' that it uses to set the price of ads on its platform," the lawsuit said. "Amazon represents, and advertisers believe, that competitive auctions set the prices for advertising on its leading e-commerce website. But, in reality, Amazon overrides and replaces the actual auction results with higher prices set by Amazon to increase its profits."

The FTC said it obtained internal documents and messages that reveal how Amazon secretly inflated auction prices for Sponsored Products, Sponsored Brands, and Sponsored Display advertisements that appear alongside results seen by consumers when they search for a product. The FTC investigation began in 2024.

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Some Americans worry that the Federal Trade Commission's rush to limit personalized pricing in the name of consumer protection could end up killing discounts they depend on or, counterintuitively, raising prices.

The FTC has no power to ban personalized pricing, in which a business uses a customer’s personal data to determine the highest price that person might be willing to pay for a product or service. But the agency believes it could set limits on the practice, including potential penalties for businesses that fail to disclose when customers may be paying more because data suggests they won't balk at the price.

In a request for public comment on a proposed policy statement, the FTC acknowledged that personalized pricing is common in some industries. But FTC Chair Andrew Ferguson said new industries are increasingly tracking customers to set individualized prices, blindsiding consumers who expect a listed price in markets like retail “to be the same price that everyone else sees,” Ferguson said.

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The Trump administration is trying to stop New York from enforcing its gambling laws against Kalshi, and yesterday said it ordered the prediction market to continue operating in the state.

The Commodity Futures Trading Commission (CFTC) announced that it exercised its emergency authority in response to a "market emergency." The CFTC said it acted "to ensure market stability" and "ordered the exchange to continue to operate in accordance with the Commodity Exchange Act’s Core Principles." The Trump administration took the action after a request from Kalshi.

The market emergency alleged by the CFTC is that New York Attorney General Letitia James sued Kalshi on July 31. James' lawsuit seeks a court order to permanently enjoin Kalshi "from operating an unlawful gambling business" in the state. The lawsuit also demands that Kalshi "make full restitution to customers who have engaged in betting" and pay financial penalties.

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Ahead of a July 2 deadline to submit public comments, advocates are warning the Federal Trade Commission that it must keep close watch over Elon Musk’s X and firmly reject a recent bid to end the agency’s ongoing audits of the platform’s data handling.

Last month, the FTC posted a notice explaining that X had argued that an FTC order was no longer necessary due to changes Musk had made to the platform.

The initial order came as a penalty after the FTC found that a coding error had caused then-Twitter to improperly share users’ contact information for ad targeting that had initially been submitted for two-factor authentication. Under the order, X is subjected to costly independent audits, and the FTC has authority to demand documents to ensure compliance with data privacy laws without taking additional legal action.

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A fight between states and the federal government over who should regulate sports betting is heating up, as states accuse prediction markets like Kalshi of taking the exact same sports bets as gambling platforms without paying taxes or adhering to stricter controls.

Last Tuesday, Kalshi sued Illinois Attorney General Kwame Raoul, Governor J.B. Pritzker, and other officials after the state classified Kalshi and other prediction markets as unlicensed sports wagering operators.

It’s not the first legal battle between a prediction market and a state, but it is perhaps the most urgent for Kalshi, which is the biggest prediction market for sports bets. Across the board, prediction markets just had their biggest week ever, amid major sporting events like the NBA Finals, the World Cup, and the Stanley Cup. If the law stands, Kalshi would owe taxes no other state is charging and could face felony charges if violations are found.

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