Federal regulators and a coalition of state attorneys general have filed a lawsuit against Amazon, alleging the company secretly inflated prices for sponsored ads to benefit its own retail business. The complaint suggests Amazon used a practice called "shadow pricing," where it charged advertisers more than the actual cost of clicks to drive traffic to its own products. Critics argue this unfairly steered customers toward Amazon’s marketplace while harming smaller competitors. The case raises concerns about market dominance and transparency in digital advertising.
F.T.C. and 22 States Claim in Lawsuit That Amazon Secretly Inflated Ad Prices The New York Times
