FTC Sues Amazon Over Alleged Deceptive Ad Practices
The Federal Trade Commission (FTC) and 22 state attorneys general have filed a lawsuit against Amazon, alleging that the tech giant overcharged advertisers by millions of dollars through secret surcharges in its ad auctions.
The complaint, which was filed in the Western District of Washington, claims that Amazon added hidden fees to its ad auction system, inflating rates for Sponsored Products, Sponsored Brands, and Sponsored Display placements. This practice allegedly generated over $20 billion in revenue for Amazon between 2018 and an unspecified date.
The plaintiffs argue that Amazon's actions were deceitful, as the company did not disclose the surcharges to advertisers bidding on ad space. The suit seeks injunctive relief to halt Amazon's alleged deceptive practices and requests monetary compensation for harm caused.