Amazon Faces $20B Suit Over Alleged Advertising Pricing Scheme

The Federal Trade Commission (FTC) and 22 states, including North Carolina, have filed litigation against Amazon alleging an illegal advertising pricing scheme that overcharged more than 1.2 million customers $20 billion since 2019.

The scheme, according to the plaintiffs, involved Amazon using 'shill' bids hidden from public view to enable higher charges to the winner of auctions.

America's largest technology company allegedly knew that advertisers were bidding based on the belief they were participating in a true second-price auction, but internally discussed increasing prices while hoping advertisers wouldn't notice and decrease their bids or ad spend.

The litigation seeks a permanent injunction, monetary relief, additional relief deemed 'just and proper' by the court, and awarding states civil penalties, restitution, disgorgement, and/or forfeitures for each violation of respective state laws.