IOWA AND NEBRASKA ARE AMONG 22 STATES SUING AMAZON, ACCUSING THE COMPANY OF OVERCHARGING SMALL BUSINESSES BY TENS OF BILLIONS OF DOLLARS.
THEY ARGUE AMAZON REPLACED COMPETITIVE AUCTION RESULTS WITH ITS OWN PRICING FOR ADVERTISING, INFLATING THOSE COSTS ON PEAK SHOPPING DAYS.
THE LAWSUIT CONTENDS AMAZON HID SURCHARGES FROM ITS ADVERTISING CUSTOMERS, WHO PASSED ALONG THE PRICE HIKES TO INDEPENDENT SELLERS AND ULTIMATELY TO CONSUMERS.
AMAZON SAYS ITS ADVERTISERS NEVER PAY MORE THAN THEIR BIDS, ADDING THERE’S NO EVIDENCE OF CONSUMER PRICE INCREASES.
