Italy’s competition watchdog AGCM has fined tech giant Amazon (NASDAQ:AMZN) and cigarette manufacturer British American Tobacco (NYSE:BTI) a total of €7 million ($7.5 million) for the misleading advertising of heated tobacco products, according to Reuters.
The competition watchdog fined BTI €6 million, and Amazon was fined €1 million for not adequately disclosing nicotine content and health risks. The regulator said that advertising portrayed the Glo Hyper X2 and Glo Hyper Air heated tobacco products as harmless electronic devices. BTI sells these products on Amazon’s platform.
The regulator added that this kind of advertising was “seriously misleading” and could lead to consumers buying a product that poses health risks and is not allowed for minors.
Amazon strongly disagreed with the regulator’s decision and plans to appeal, stating that its product descriptions include age restrictions and health risks. The AGCM launched the investigation in April last year, accusing the companies of marketing products as “nicotine-free” and not stating that they were for adults only.
What Is the Future Price of Amazon Stock?
Analysts remain bullish about AMZN stock with a Strong Buy consensus rating based on 39 Buys. AMZN stock has surged by more than 65% over the past year, and the average AMZN price target of $207.92 implies an upside potential of 23.3% at current levels.
