Amazon Hit with $20B Lawsuit Over Alleged Ad Overcharging
Amazon is facing a massive lawsuit from the Federal Trade Commission (FTC) and 22 states, including Washington, for allegedly overcharging businesses that advertise on its platform. The FTC claims Amazon added a hidden surcharge to online ad auctions in 2019, using an 'invented auction participant' to push prices higher.
The lawsuit alleges more than 1.2 million advertisers were affected, including over 500,000 small and medium-sized businesses, generating more than $20 billion in extra revenue for the company.
Washington State Attorney General Nick Brown said his office joined the case because businesses in the state were among those allegedly overcharged.
Amazon denies wrongdoing, saying its system improves the relevance of advertising. The FTC is seeking civil penalties, restitution, and other court-ordered relief.