Amazon sued over ad pricing – what it means for advertisers and shoppers

On Monday, the U.S. Federal Trade Commission filed a lawsuit against Amazon. Lawyers from 22 states joined the complaint.

The FTC says Amazon made about 1.2 million advertisers pay more than $20 billion in extra advertising fees.

According to the complaint, Amazon quietly added its own bids to the auction system, which pushed ad prices higher than they should have been.

Amazon disagrees with the claim and says advertising prices have actually gone down since 2019.

The head of the FTC said shoppers also paid more because companies raised the price of food and other goods.

The states want the court to stop the practice, fine Amazon, and reimburse the advertisers. Amazon’s share price fell 2.5 % on Monday.

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