Amazon Faces Israeli Class-Action Lawsuit Over Hidden Ad Charges
Amazon faces a class-action lawsuit in Israel as a local pet supplies firm accuses the tech giant of secretly overcharging advertisers, causing tens of millions of shekels in damages.
Amazon faces a class-action lawsuit in Israel as a pet supplies company accuses the retail giant of overcharging local businesses for advertising services. The Israeli firm, which spent hundreds of thousands of dollars on platform ads, filed the legal motion in court.
The central claim alleges that Amazon promoted one payment structure while covertly operating a different system. According to a report by Israel Hayom, this undisclosed method resulted in higher costs per user click than agreed, leaving advertisers unable to verify or detect the discrepancies.
The Israeli legal action mirrors a parallel lawsuit in the United States, which brought internal documents to light. These files indicate that Amazon increased actual ad prices without notice once a business secured a prime advertising slot, exploiting its exclusive knowledge of competitor bids.
Economic experts estimate that this opaque pricing inflated advertising expenses by about one percent. Although this percentage appears modest, the cumulative damage across numerous Israeli advertisers reaches tens of millions of shekels as the court considers whether to certify the class-action suit.
