Amazon Sued by FTC and States Over Alleged Ad Price Inflation

The Federal Trade Commission (FTC) and 22 states have filed a lawsuit against Amazon, claiming that it defrauded advertising customers by inflating prices for online auctions on ads.

The complaint alleges that Amazon misled its 1.2 million advertising customers into paying significantly higher prices for ad products. According to the FTC, Amazon said it was offering competitive prices when in fact it was inflating auction prices.

FTC Chairman Andrew Ferguson stated, 'When one of the world's largest online retailers engages in unfair and deceptive conduct, the impact can be staggering.'

In response, Amazon disputed the allegations, saying that the FTC 'leans on a handful of simplified communications to allege a companywide effort to deceive.'