FTC Accuses Amazon of Rigging Ad Prices, Lawsuit Alleges Secret Surcharges

The Federal Trade Commission (FTC), joined by 22 state attorneys general, has filed a lawsuit accusing Amazon of manipulating advertising prices on its platform. The lawsuit alleges that Amazon implemented a "secret ad surcharge scheme" that systematically overcharged approximately 1.2 million businesses advertising on its website and app.

According to FTC officials, these inflated advertising costs were largely passed on to American consumers, leading to higher prices for goods. Amazon has responded to the allegations, stating that the FTC "misunderstands" its advertising market. This legal action highlights ongoing scrutiny of major tech platforms and their monetization strategies, particularly concerning advertising practices and their impact on both businesses and consumers.