Amazon Faces FTC Lawsuit Over Alleged Ad Price Deception

The Federal Trade Commission and 22 states have filed a lawsuit against Amazon alleging that the e-commerce giant defrauded advertisers through its advertising price model.

The complaint, filed in the U.S. District Court in Washington, claims that Amazon overcharged 1.2 million customers by misleading them about prices for online ad auctions.

According to the suit, Amazon offered competitive prices on ad products while actually raising auction prices, earning tens of billions of dollars from the model.

The states joining the lawsuit include Florida, North Carolina, Pennsylvania, and Washington, which may be able to recover some of the money from Amazon.