FTC sues Amazon, accusing the e-commerce giant of misleading advertisers
A worker sorts packages on Amazon Prime Day in New York, July 8, 2025.
Klaus Galiano | Bloomberg | Getty Images
The Federal Trade Commission on Monday sued Amazon, alleging the e-commerce giant “secretly and systematically overcharged” advertisers on its platform by manipulating its pricing and auction systems.
The lawsuit, which was joined by 22 state attorneys general, argues that Amazon may have reaped more than $20 billion from advertisers by using “hidden surcharges” dating back to a change to its auction rules that took effect in 2019.
The complaint, which was filed in U.S. District Court for the Western District of Washington, centers on Amazon’s sponsored products ads, brands ads and display ads that run alongside search results on its sprawling webstore.
Amazon has amassed the third-largest digital advertising business globally, trailing only Google and Meta. The company hauled in more than $68 billion in ads revenue last year, with the lion’s share coming from sales of sponsored products ads.
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