FTC Says Amazon Buried Ad Markup That Inflated Consumer Bills

Federal and state regulators filed suit against Amazon on Wednesday, accusing the e-commerce giant of systematically inflating ad costs through concealed markups on its platform. The FTC and 22 state attorneys general allege that Amazon rigged its "second price" auction system for ads, forcing sellers to overpay and passing those costs to consumers. FTC Chairman Andrew Ferguson stated the higher advertising fees were largely absorbed by American shoppers. Amazon allegedly violated the FTC Act and more than a dozen state consumer protection statutes. The action follows a $2.5 billion settlement Amazon reached with the FTC last year over Prime subscription practices, signaling escalating regulatory scrutiny of the company's business practices.