FTC Sues Amazon Over Alleged Ad Surcharge Scheme
The Federal Trade Commission (FTC) has filed a lawsuit against Amazon, accusing it of secretly increasing ad prices for businesses through its online auction system. The complaint alleges that the company manipulated pricing by introducing hidden surcharges and fake bidders to drive up costs without informing advertisers. According to the FTC, this practice affected over 1 million brands and sellers, potentially generating tens of billions in additional revenue for Amazon since 2019. The lawsuit claims Amazon misrepresented its auction system as a second-price model but effectively operated it like a first-price one by charging full bids nearly 80% of the time. Amazon has denied wrongdoing, calling the FTC's allegations
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Topics: advertising practices Amazon FTC lawsuit