FTC Sues Amazon Over $20 Billion in Alleged Hidden Ad Surcharges
Updated
Updated · CNBC · Aug 31
FTC Sues Amazon Over $20 Billion in Alleged Hidden Ad Surcharges
3 articles · Updated · CNBC · Aug 31
Summary
$20 billion is the amount the FTC says Amazon may have extracted from advertisers by secretly manipulating ad pricing and auction systems, according to a lawsuit filed Monday.
22 state attorneys general joined the complaint, which says hidden surcharges stemmed from auction-rule changes that took effect in 2019 and systematically overcharged advertisers.
The case targets Amazon's sponsored products, brands and display ads that appear alongside search results on its online marketplace.
Filed in U.S. District Court for the Western District of Washington, the suit escalates scrutiny of Amazon's fast-growing advertising business and its treatment of merchants and brands.