US sues Amazon over hidden ad price hikes

WASHINGTON, United States — WASHINGTON — The US Federal Trade Commission and attorneys general from 22 states filed a lawsuit against Amazon, accusing the company of covertly raising advertising prices on its marketplace for more than seven years. FTC Chair Andrew Ferguson said the higher costs were largely passed on to American consumers. He added that when one of the world's largest online retailers engages in unfair and deceptive practices, the impact can be significant. Under Amazon's auction system, the highest bidder traditionally pays only one cent above the second-highest bid. The commission alleged, however, that in roughly four out of five product ad auctions the company collected the full amount of the winning bid. Amazon shares fell 2.5 percent on the day the lawsuit was filed. No further details were immediately available on the company's response.