Arizona Sues Amazon Over Alleged Advertising Price Fixing
Arizona has joined 21 other states and the Federal Trade Commission in filing a lawsuit against Amazon, accusing the e-commerce giant of inflating advertising prices. The complaint alleges that Amazon defrauded 1.2 million sellers on its platform by telling them they were bidding in a fair, second-price auction while secretly adding hidden surcharges.
The Arizona Attorney General's office says these increased costs were passed on to Arizonans. Companies engaging in such deceptive practices must be held accountable, according to Attorney General Kris Mayes.
Amazon posted a lengthy rebuttal Monday denying the allegations, stating that the FTC is relying on simplified communications to allege a companywide effort to deceive. The e-commerce giant claims the case is not about consumer prices and points out that consumers are only mentioned a handful of times in the over 150 pages of the complaint.