FTC, States Sue Amazon Over Alleged Secret Advertising Surcharge Scheme

The Federal Trade Commission (FTC), alongside 22 state attorneys general, has initiated a lawsuit against Amazon, accusing the e-commerce behemoth of implementing a "secret ad surcharge" to inflate advertising prices on its platform. FTC chairman Andrew Ferguson stated that these increased advertising costs were "largely passed on to American consumers."

Amazon has refuted the allegations, with a company spokesperson asserting that the FTC "misunderstands" the dynamics of their advertising market. The lawsuit contends that Amazon has been systematically overcharging for ads, a practice that could impact competition and ultimately affect consumer prices.