Amazon Sued by FTC and 22 States Over Alleged Hidden Advertising Fees

The Federal Trade Commission (FTC) and attorneys general from 22 states have filed a lawsuit against Amazon, accusing the company of secretly manipulating its online advertising auctions to charge advertisers excessive fees.

The FTC alleges that Amazon used a pricing system that raised minimum bids for sponsored product, brand, and display advertisements, resulting in more than $20 billion in additional costs for advertisers since 2019. Over one million small to mid-size businesses pay to promote their products on the platform.

Regulators say the elevated advertising expenses may ultimately have been passed on to consumers through higher prices. Amazon denies the allegations, arguing that its advertising system has saved advertisers billions of dollars.