Amazon Sued Over Secretly Increased Ad Prices

A lawsuit has been filed against Amazon.com, Inc. by Pennsylvania Attorney General Dave Sunday and 21 other state attorneys general along with the Federal Trade Commission (FTC). The complaint alleges that Amazon secretly increased advertising prices on its website and app for over seven years.

The affected advertisements include Sponsored Product ads, Sponsored Brands ads, and Display Ads that appear alongside search results. Advertisers bid for placements tied to specific keywords, but allegedly, Amazon replaced actual auction results with higher prices set by the company.

This resulted in tens of billions of dollars in charges to advertisers, including more than 14,000 independent sellers in Pennsylvania who sell over 100 million items annually through Amazon. The lawsuit seeks restitution, penalties, costs, and an injunction against Amazon for alleged violations of Pennsylvania's Unfair Trade Practices and Consumer Protection Law.