Amazon Sued by FTC Over Alleged Ad Auction Manipulation

The Federal Trade Commission (FTC) has filed a lawsuit against Amazon, alleging that the company's advertising practices are 'deceptive and unfair'. The complaint claims that Amazon overcharged 1.2 million advertisers using auction rules for its ad auctions, earning more than $20 billion from these practices since 2019.

The FTC alleges that Amazon's ad auction system manipulated prices, leading to higher costs for advertisers and ultimately American consumers. FTC chairman Andrew N. Ferguson stated, 'Amazon has millions of advertising customers who were misled into paying significantly higher prices.'

The lawsuit includes 22 U.S. state attorneys general and seeks to put an end to what the FTC calls 'deception'. The complaint focuses on Amazon's ad auction system, which sets prices for ads on its platform.