The Federal Trade Commission of the United States has sued Amazon for allegedly excessive fees charged to over 1.2 million advertisers. The lawsuit, filed in Seattle, claims that the company manipulated prices on its platform.
The Federal Trade Commission (FTC) has taken legal action against Amazon, accusing the e-commerce giant of deceiving advertisers by manipulating the prices they paid to promote products on its platform. According to expansion.com, it is estimated that Amazon made $20 billion from "unsuspecting advertising clients" through this scheme.
The lawsuit was filed on Monday in a federal court in Seattle, alongside a bipartisan group of states. This legal action aims to address the "substantial surcharges and cost increases" that have affected approximately 1.2 million customers in the United States, including over 500,000 small and medium-sized businesses.
The FTC, which is responsible for enforcing antitrust and consumer protection laws, has been investigating allegations that Amazon misled its advertising clients. The investigation intensified last year, focusing on whether Amazon adequately reported the conditions and prices related to its ads.
According to Bloomberg sources, a possible conviction could result in billions of dollars in civil penalties. Following the publication of this information, Amazon's shares fell nearly 3% in the trading session.
In response to the allegations, Amazon stated that the FTC's claims "fundamentally misinterpret" how its advertising auctions work, asserting that its practices have not increased costs for consumers or advertisers.
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