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

The Federal Trade Commission, joined by 22 state attorneys general, has filed a lawsuit accusing Amazon of secretly inflating advertising prices on its website and app. The complaint alleges Amazon manipulated its 'second price' ad auction system through an undisclosed surcharge, effectively making advertisers pay more than the rules indicated. FTC chairman Andrew Ferguson stated that the higher ad costs were largely passed on to American consumers. Amazon is accused of violating the FTC Act as well as more than a dozen state laws. This legal action follows Amazon's $2.5 billion settlement with the FTC nearly a year ago over its Prime subscription practices.
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