Amazon Accused of Rigging Ad Auctions to Hike Prices Secretly

What is happening

The Federal Trade Commission, along with 22 states, has filed an updated complaint against Amazon. This involves alleged deceptive practices in Amazon's advertising auction process, aimed at secretly inflating ad prices.

How the scam works

Amazon is accused of charging advertisers more than the auction results would suggest. The complaint alleges prices were raised by as much as 50% on ordinary days and up to 250% on major shopping days, misleading advertisers about the cause.

How to spot it

Advertisers might notice unexpected price increases in their cost-per-click, especially during major shopping events like Prime Day. Sudden rises in advertising costs without clear justification can be a warning sign.

What to do

Advertisers should scrutinize their advertising invoices for hidden surcharges and question any unexplained increases. It's important to reach out to Amazon if discrepancies or unexpected charges arise.