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🇺🇸 United States /Economy & Trade

FTC and 22 States Sue Amazon Over Alleged Secret Advertising Surcharges

From CBS News · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Official statement Under investigation
  • The Federal Trade Commission and 22 states sued Amazon, alleging that it secretly inflated prices in its online search advertising auctions for seven years.
  • The lawsuit says the surcharges affected more than 1 million brands and sellers and may have cost customers tens of billions of dollars.
  • FTC Chairman Andrew Ferguson said the higher advertising costs were largely passed on to U.S. consumers, while Amazon had not immediately commented.

The Federal Trade Commission and 22 states have sued Amazon over allegations that the e-commerce company secretly added surcharges to its online search advertising auctions.

The lawsuit claims the undisclosed charges operated for seven years and increased the prices paid by more than 1 million brands and sellers to advertise on Amazon’s platform. Regulators said the alleged conduct could have cost customers tens of billions of dollars.

The case was joined by attorneys general from states including California, Florida, New York, Pennsylvania and Washington. The FTC said the alleged pricing practices affected both businesses using Amazon’s advertising system and consumers who ultimately paid for products.

When one of the world's largest online retailers engages in unfair and deceptive conduct, the impact can be staggering

— Andrew N. FergusonThe FTC chairman described the alleged conduct and its potential effect on businesses and consumers.

“When one of the world's largest online retailers engages in unfair and deceptive conduct, the impact can be staggering,” FTC Chairman Andrew N. Ferguson said in a statement. “Amazon has millions of advertising customers who were misled into paying significantly higher prices. These higher costs were largely passed on to American consumers.”

Amazon did not immediately respond to a request for comment. The case remained breaking news and was expected to be updated.

Amazon has millions of advertising customers who were misled into paying significantly higher prices. These higher costs were largely passed on to American consumers.

— Andrew N. FergusonFerguson said the alleged advertising charges were ultimately reflected in consumer prices.
About this summary

Originally published by CBS News in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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