FTC and 22 states sue Amazon over alleged secret ad surcharge scheme

The Federal Trade Commission and a coalition of 22 state attorneys general have filed a lawsuit against Amazon, alleging the company engaged in a scheme involving secret ad surcharges. The legal action claims that Amazon artificially inflated advertising prices, resulting in tens of billions of dollars in overcharges for brands and sellers utilizing the platform.

The lawsuit represents a coordinated effort by federal and state regulators to address Amazon's advertising practices. By targeting the alleged inflation of ad costs, the regulators aim to challenge the company's influence over the marketplace and its impact on the businesses that rely on its advertising services.