NJ Joins Ftc & 21 States in Lawsuit Accusing Amazon of Rigging Ad Auctions
What happened
New Jersey is taking on Amazon. 👀
Attorney General Jennifer Davenport has joined the FTC and a bipartisan coalition of 21 other states in a lawsuit accusing Amazon of manipulating the advertising auctions used by businesses and sellers on its platform.
The lawsuit alleges Amazon secretly altered its auction system in ways that caused advertisers to pay more, generating billions of dollars in additional revenue. Officials argue those higher advertising costs may have also been passed down to consumers through higher prices.
More than 1 million advertisers are alleged to have been affected, including hundreds of thousands of small and medium-sized businesses.
Amazon has denied the allegations, saying the government misunderstands how its advertising auctions work.
The case is now pending in federal court.
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