Amazon

September 28, 2023

Amazon sued by FTC and 17 states over allegations it inflates online prices and overcharges sellers

The lawsuit, filed Tuesday in federal court in Amazon’s home state of Washington, is the result of a yearslong investigation into the company and one of the most significant legal challenges brought against it in its nearly 30-year history. Read more.

Why this matters:

U.S. regulators and 17 states are suing Amazon over allegations the e-commerce behemoth abuses its position in the marketplace to inflate prices on and off its platform, overcharging sellers and stifling competition.
Some estimates show Amazon controls about 40% of the e-commerce market. A majority of the sales on its platform are facilitated by independent sellers. In return for access to its platform, Amazon rakes in billions through referral fees and advertising services.
The federal complaint follows other actions the FTC has taken against Amazon recently. In June, the agency sued Amazon, alleging it was using deceptive practices to enroll consumers into Amazon Prime and making it challenging to cancel subscriptions. And in late May, the company agreed to pay $25 million to settle allegations that it violated a child privacy law and misled parents about data deletion practices.