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NewsKPBS Public MediaAugust 31, 2026San Diego

Federal Trade Commission and 22 states sue Amazon over alleged advertising auction manipulation

The Federal Trade Commission and a bipartisan coalition of 22 state attorneys general have filed a lawsuit alleging Amazon systematically overcharged advertisers by manipulating its ad auction bidding process. The complaint claims the company deceived customers and stifled competition, while Amazon denies the allegations, stating the FTC misrepresented its auction practices.

antitrustadvertisinglitigationconsumer protectione-commerce
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Why It Matters

This lawsuit targets the pricing mechanisms for 1.2 million brands and sellers using Amazon's advertising platform, potentially impacting the costs of goods sold on the site and the future of Amazon's rapidly growing advertising business.

Key Facts

  • The FTC and 22 state attorneys general filed a lawsuit alleging Amazon manipulated ad auctions to overcharge advertisers.
  • The lawsuit claims Amazon's actions affected 1.2 million brands and sellers.
  • Amazon's advertising revenue reached nearly $69 billion in 2025.
  • Amazon's advertising business grew by 26% in the most recent quarter.
  • This is the third major lawsuit filed by federal regulators against Amazon.
  • Amazon previously paid a $2.5 billion settlement regarding Prime membership cancellation practices.
  • Amazon previously paid $30 million in 2023 to settle privacy allegations involving Alexa and Ring.
  • A separate antitrust lawsuit involving the FTC and 17 states is scheduled for trial early next year.
  • Amazon denies the allegations, claiming ad quality improved and cost-per-click remained flat when adjusted for inflation.

Who's Mentioned

organizationFederal Trade Commission“Federal regulator filing the lawsuit”locationU.S. District Court in Washington“Venue where the lawsuit was filed”organizationAmazon“Defendant in the lawsuit”