The Federal Trade Commission and 22 states have sued Amazon, accusing the e-commerce giant of secretly inflating prices in its online advertising auctions.
The lawsuit, filed Monday in federal court, alleges that Amazon used undisclosed surcharges to raise minimum advertising prices over a seven-year period. The FTC says the practice affected more than 1 million brands and sellers that rely on Amazon's advertising platform.
FTC Chairman Andrew N. Ferguson said the alleged conduct misled millions of advertising customers and ultimately contributed to higher costs for consumers.
The lawsuit seeks civil penalties and potentially billions of dollars related to the alleged harm. Amazon's shares fell about 3% following news of the case.
The latest case could have significant implications for Amazon's advertising business, one of the company's major and rapidly growing revenue streams, while potentially forcing changes to how the company conducts its advertising auctions.
Related Tweet:
Amazon rigged billions in ad pricing, lawsuit from states and US watchdog alleges https://t.co/ywZ2xAYnHy
— BBC News (World) (@BBCWorld) August 31, 2026
Also Read:
TIPP Staff
