FTC Sues Amazon Over Alleged $20 Billion Advertiser Scam

The Federal Trade Commission (FTC) has filed a lawsuit against Amazon, alleging that the e-commerce giant 'secretly and systematically overcharged' advertisers on its platform. The complaint, joined by 22 state attorneys general, claims that Amazon may have earned more than $20 billion from advertisers using 'hidden surcharges.'

The FTC alleges that Amazon manipulated its pricing and auction systems to favor its own interests, leading to inflated costs for advertisers. This practice, according to the lawsuit, was not disclosed to advertisers, who were left unaware of the additional fees.

The lawsuit was filed in U.S. District Court for the Western District of Washington. The alleged misconduct spans several years, with the exact timeline not specified in the complaint.