FTC Sues Amazon Over Ad Pricing

The FTC has filed lawsuits against Amazon alleging hidden pricing practices in its advertising business, including undisclosed pricing mechanisms and reserve pricing intended to inflate costs. Claims center on Amazon’s $68.6 billion ad business and say the company extracted billions from about 1.2 million advertisers, with some costs ultimately passed to consumers. More than 20 states joined the actions, which are being heard in a Seattle federal court and cover a seven-year window. Amazon has disputed the claims, saying the charges misstate how advertisers operate and that costs to consumers or advertisers were not raised. The lawsuits represent the FTC’s third major federal challenge against Amazon in recent years and reflect a broader enforcement stance against digital platforms.