Amazon is clashing with labor unions again over deceptive advertising practices.
The company is accused of deceiving millions of consumers by failing to disclose advertisements in its search results.
The complaint was filed by the Strategic Organizing Center, a coalition of four labor unions representing a total of four million workers across an array of industries.
The filing states that Amazon is deliberately obfuscating identification of a key category of advertisements by delaying their ad labels from loading for several seconds.
An analysis of 130,000 product search results shows that an overwhelming proportion of advertisements aren't distinguishable from organic search results, an oversight that the coalition writes "throws into question the fundamental integrity of'search' on Amazon's online platform."
An Amazon spokesman told Insider that the complaint is incorrect and that advertisements on the site always include a clear and prominent "sponsored" label.
The store is designed to help customers discover products they may be interested in, and sponsored ads are one way to help them find products they may be interested in.
Under current FTC regulation, sponsored ads must be identified using any method, so long as it is noticeable and understandable to consumers. The representative for the FTC declined Insider's request to comment on the matter.
The filing came after the SOC published a report about Amazon's operations during the Pandemic and alleged that the e-commerce giant prioritized production to maximize profits while resisting efforts to monitor and regulate COVID-19 safety in its operations.
It comes on the heels of multiple allegations of union-busting practices at Amazon, as warehouse workers around the country started organizing during the Pandemic.
In August, the National Labor Relations Board ruled that the company interfered in a union vote at a warehouse in Alabama. Vice reported that the company had been charged by the National Labor Relations Board with breaking labor law by preventing a Staten Island employee from handing out pro-union leaflets.
