FTC and 22 States Sue Amazon Over Alleged Ad Pricing Practices

<figure> <img alt="Illustration of Amazon’s logo on a black, orange, and tan background." src="https://platform.theverge.com/wp-content/uploads/sites/2/chorus/uploads/chorus_asset/file/23935558/acastro_STK103__01.jpg?quality=90&amp;strip=all&amp;crop=0,0,100,100" /> <figcaption> </figcaption> </figure> <p class="wp-block-paragraph">The Federal Trade Commission (FTC) and 22 state attorneys general have filed a lawsuit against Amazon, alleging that the company has implemented a "secret ad surcharge" that increases advertising prices on its website and app. FTC Chairman Andrew Ferguson stated in a blog post regarding the lawsuit that the elevated advertising costs "were largely passed on to American consumers." The complaint alleges that Amazon violated the FTC Act and numerous state laws. This lawsuit follows Amazon's previous settlement of $2.5 billion related to FTC allegations concerning its Prime subscription practices, which occurred nearly a year prior.</p> <p class="wp-block-paragraph">In Amazon's "second price" auctions for ads on its platform, the winning bidder is expected to pay one cent more than the second-highest bid, which is part of the pricing structure being scrutinized in the lawsuit.</p> <p><a href="https://www.theverge.com/tech/986982/amazon-advertising-prices-ftc-lawsuit">Read the full story at The Verge.</a></p>