FTC and States Sue Amazon Over Ad Practices
The FTC and 22 states sued Amazon over its advertising practices. The lawsuit was filed in a federal court in Washington state.
Regulators claim Amazon secretly charged extra fees for more than seven years. They say Amazon changed how its ad auctions worked.
Regulators say Amazon hid these changes from advertisers. Regulators say more than 1.2 million advertisers paid too much.
Amazon denied the regulators' claims. Amazon says its auction changes helped advertisers.
Amazon says advertisers saved more than $8 billion. This saving happened from 2021 through 2025.
Klear Note — Online ad auctions decide which ads appear and how much advertisers pay. The FTC is a U.S. agency enforcing consumer and business rules.
Key Terms 2
- FTC Federal Trade Commission, a US government agency that protects consumers.
- second-price auction A bidding system where the winner pays the second-highest bid amount.