Amazon Sued Over Alleged Ad Auction Rigging Scheme

Indiana Attorney General Todd Rokita's office has filed a lawsuit against Amazon, alleging that the company is rigging its online sponsored ad auctions and overcharging businesses by potentially billions of dollars. According to the state, businesses bidding on ads should only pay a penny more than the next-highest bid, but Amazon allegedly replaced this true second-place bid with a higher, internally calculated figure that was more profitable for the company.

The lawsuit claims that the inflated ad costs are passed directly to consumers, driving up the price of products purchased on the site. In response to the suit, Amazon stated that there is 'no harm to consumers' and that the Federal Trade Commission's own complaint cites no evidence of consumer price increases.