Amazon Sued by FTC and 17 States over Allegations it Inflates Online Prices and Overcharges Sellers

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Amazon Sued by FTC and 17 States over Allegations it Inflates Online Prices and Overcharges Sellers
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Amazon is being sued by U.S. regulators and and 17 states over allegations that the company abuses its position in the marketplace to inflate prices on

The lawsuit, filed Tuesday in U.S. District Court for the Western District of Washington, is the result of a years-long investigation into Amazon’s businesses and one of the most significant legal challenges brought against the company in its nearly 30-year history.

The complaint also says the company degrades the customer experience by replacing relevant search results with paid advertisements, biasing its own brands over other products it knows to be of a better quality and charging heavy fees that forces sellers to pay nearly half of their total revenues to Amazon.

The vast majority of third-party merchants also use the company’s fulfillment service to store inventory and ship items to customers. Amazon has been consistently raising fees for those reliant on the program and more recentlyon some who don’t, a move that was blasted by the company’s critics.

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