FTC and 22 states sue Amazon over alleged secret ad surcharge scheme
Summary
The Federal Trade Commission (FTC) and 22 states sued Amazon for allegedly charging secret extra fees in its online advertising auctions. These hidden surcharges are said to have increased advertising costs for over a million Amazon sellers and may have cost customers billions of dollars over seven years.Key Facts
- The FTC and 22 states filed the lawsuit against Amazon on Monday.
- Amazon is accused of secretly raising prices in its online ad auctions without telling sellers.
- The extra charges affected more than 1 million brands and sellers on Amazon’s platform.
- The alleged surcharges lasted for seven years.
- The increased costs for advertisers were likely passed on to customers.
- The states involved include Alaska, California, Florida, New York, and others.
- FTC Chairman Andrew Ferguson said Amazon’s actions misled advertisers and harmed consumers.
- Amazon has not yet responded publicly to the lawsuit.
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