Amazon Faces $20 Billion Lawsuit Over Alleged Advertising Scam

The US Federal Trade Commission (FTC) has filed a lawsuit against Amazon, alleging that the company 'secretly and systematically' overcharged advertisers on its platform.

The FTC claims that Amazon's auction rules change in 2019 added an undisclosed surcharge called a 'soft reserve price' that led to higher ad prices.

Amazon has been accused of using a 'deceptive and unfair' practice by creating an 'invented auction participant' to raise prices.

The company denies the allegations, saying that advertisers paid the same amount but got more value from improved ad relevancy and performance.