FTC Targets Amazon Over Alleged Advertising Price Manipulation

The Federal Trade Commission (FTC) is planning to sue Amazon over allegations that the company secretly raised prices paid by businesses advertising on its marketplace.

According to reports, more than 20 state attorneys general are expected to join the lawsuit, which could be filed as early as Monday. The FTC alleges that Amazon used undisclosed bids known as 'soft reserves' to raise minimum ad prices, increasing pay-per-click costs by up to 50% on major shopping days.

The agency claims this practice caused billions of dollars in harm to advertisers, who were unaware of the price increases. Amazon has denied the allegations, stating that investigators misrepresented its auctions and presented no evidence of consumer harm.