The Federal Trade Commission (FTC) and 22 US states have filed a lawsuit against Amazon, accusing the e-commerce giant of running a 'secret ad surcharge scheme' for over seven years. The case suggests Amazon's Sponsored Products, Sponsored Brands and Display ads may have seen hidden fees, pushing up costs for businesses significantly.

The lawsuit argues that Amazon, instead of a second-price auction, secretly implemented a 'soft reserve price' and a 'fake bidder,' leading to advertisers often paying their full bid, rather than a cent more as originally promised. This, the FTC says, has generated tens of billions of dollars for Amazon, at the expense of countless businesses.

Amazon disputes the claims, stating that its auctions naturally vary due to the billions of bids they process. The company claims it always disclosed the auction system and that the pricing was always transparent. This latest allegation is part of a broader trend of tech giants being scrutinised for their business practices.

The implications are huge, potentially setting a precedent for how businesses are treated in advertising auctions. It's a stark reminder that while technology promises efficiency, it's not always as fair as it seems.

Amazon's revenue from advertising last year was over $68 billion, leading some to question the ethics of such a powerful company. The outcome of this case could signal big changes in how we advertise online.