The Ecomcrew Ecommerce Podcast

← The Ecomcrew Ecommerce Podcast25 sep · 27 min

E661: How much will sellers get from the FTC vs. Amazon lawsuit?

E661: How much will sellers get from the FTC vs. Amazon lawsuit?25 sep27 min

You probably know by now that the FTC has filed a lawsuit against Amazon, alleging that $20 billion was stolen advertising fees. But the question remains; what is the fallout going to be like for Amazon?

Thinking about taking some risk off the table? Or are you looking at taking an extended break from e-commerce in general? Know what your e-commerce business is worth with Quiet Light Brokerage.

In this episode, Dave looks at the potential for seller restitution, how much Amazon sellers could actually get from Amazon, and how sellers can maximize the chances of getting some kind of monetary compensation. Dave looks at past cases involving the FTC vs. tech companies, and Amazon's press release regarding this lawsuit to support today's topic.

In a rush? High-level timestamps can be found down below:

Timestamps 00:00 - FTC lawsuit overview 00:30 - What today's episode will cover: comparable cases and settlement odds 01:20 - Tariff anxiety, business stress, and why some sellers consider exiting 02:18 - Why Dave recommends Quiet Light Brokerage for founders thinking about selling 04:13 - The FTC's $20 billion allegation and why a settlement is more likely than a trial 05:12 - Why FTC cases often end in settlement: the historical success rate 06:09 - Amazon's response and its biggest objection to the FTC narrative 07:34 - Amazon's explanation for changing ad auction systems as it scaled 08:57 - Why sellers still care about auction mechanics, not just ROI 11:48 - Fleetcor Technologies Case: hidden fees, FTC action, and a $100 million restitution deal 14:45 - Why Amazon's alleged $20 billion damages make a billion-dollar settlement plausible 15:43 - Amazon Prime cancellation lawsuit as the closest precedent 16:39 - The $2.5 billion Prime settlement and what individuals received back 17:37 - Why Amazon may care less about seller backlash than consumer backlash 19:02 - Why sellers should amplify the case and pressure Amazon publicly 20:59 - A rough payout model: what $20 billion could mean per seller 22:55 - Why calculating individual restitution will be messy 23:24 - Which ad products may have been hit hardest and a simple 8% refund idea 25:21 - The risk of Amazon burying the case versus forcing a meaningful payout 26:20 - How Amazon may need to change ad bidding transparency going forward As always, if you have any questions or anything that you need help with, leave a comment down below if you're interested.

Don't forget to leave us a review on iTunes if yo