FTC and 22 states file lawsuit accusing Amazon of hidden ad fees

The Federal Trade Commission, together with attorneys general from 22 U.S. states, has brought a civil action against Amazon, accusing the e-commerce platform of secretly imposing extra charges on its online advertising auctions. The lawsuit alleges that for seven years Amazon required over a million brands and sellers to pay hidden surcharges, effectively raising the cost of advertising on its site. State participants include officials from Alaska, Arizona, California, Colorado, Florida, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Nebraska, New Jersey, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Vermont and Washington.

FTC Chair Andrew N. Ferguson said the conduct was unfair and deceptive, harming both advertisers and the broader consumer base. The filing suggests the undisclosed fees could have cost advertisers tens of billions of dollars, with those costs passed on to shoppers. Amazon has not yet issued a response to the allegations.