The Federal Trade Commission (FTC) and 22 state attorneys general have filed a lawsuit against Amazon, accusing the company of implementing a 'secret ad surcharge' that inflates advertising prices on its platform. The FTC claims that these increased costs have been largely passed on to consumers, violating the FTC Act and multiple state laws.
The lawsuit highlights allegations that Amazon has manipulated its ad auction system since 2019, setting higher prices than those determined by actual bidding. Amazon has denied the claims, arguing that the average winning bid for ads has decreased significantly during the same period.