FTC sues Amazon, accusing the e-commerce giant of misleading advertisers
The FTC has filed a lawsuit against Amazon, alleging the company systematically overcharged advertisers through manipulated auction systems. Amazon has denied the claims, calling the lawsuit misguided and asserting that its tools have saved advertisers billions.
Why it matters
This legal action targets one of the world's largest digital advertising platforms and could significantly impact how e-commerce giants manage marketplace pricing and transparency.
The Federal Trade Commission on Monday sued Amazon , alleging the e-commerce giant "secretly and systematically overcharged" advertisers on its platform by manipulating its pricing and auction systems.
The lawsuit , which was joined by 22 state attorneys general, argues that Amazon may have reaped more than $20 billion from advertisers by using "hidden surcharges" dating back to a change to its auction rules that took effect in 2019.
"Amazon has millions of advertising customers who were misled into paying significantly higher prices," FTC Chairman Andrew Ferguson said in a statement. "These higher costs were largely passed on to American consumers."
In a blog post , Amazon called the FTC's lawsuit "misguided" and said the complaint "fundamentally misunderstands how advertisers operate." The company added that the agency's lawsuit doesn't include evidence of consumer price increases.
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