Amazon Sued Over Alleged Inflated Ad Prices

The Federal Trade Commission (FTC) and 22 US states have filed a lawsuit against online retailer Amazon, claiming that it defrauded advertising customers. The complaint alleges that Amazon overcharged 1.2 million advertising customers by misleading them on prices for online auctions for ads.

The FTC claims that Amazon said it was offering competitive prices on several ad products when in fact it was inflating auction prices. This, according to the FTC, resulted in millions of dollars being paid by advertisers who were misled into paying higher prices.

In response, Amazon wrote in a blog post that the FTC 'leans on a handful of simplified communications to allege a companywide effort to deceive.' The company denied any wrongdoing, stating that its communications with advertisers were clear and transparent.