FTC sues Amazon, accusing the e-commerce giant of misleading advertisers

TechPublished Mon, Aug 31 20262:41 PM EDTUpdated 2 Min AgoKey PointsThe FTC sued Amazon, alleging the company misled advertisers about 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."A worker sorts packages on Amazon Prime Day in New York, July 8, 2025.Klaus Galiano | Bloomberg | Getty ImagesThe 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.This is breaking news. Please refresh for updates.Read more CNBC tech newsHe beat Big Tobacco. Will the same playbook work against Meta and social media?OpenAI to end model access to Cursor after acquisition by Elon Musk's SpaceXTech backlash reaches fever pitch as AI angst collides with social media fearsApple hikes subscription prices for Apple TV and Apple One in the U.S.