The U.S. Federal Trade Commission (FTC) and 22 state attorneys general have filed a lawsuit against Amazon, accusing the tech giant of secretly and systematically charging advertisers excessive fees.
Starting in 2019, the company adopted hidden markups and changed its sponsored product auction rules, resulting in advertisers potentially overpaying more than $20 billion, according to regulators.
The lawsuit alleges that such conduct misleads businesses and indirectly affects price increases for end consumers. An Amazon representative flatly denied the accusations and said the FTC’s charges were based on a misunderstanding of how the company’s ad auctions work and intended to defend its position in court.