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FTC Sues Amazon Over Ads

The FTC and states accuse Amazon of secretly inflating ad prices by billions.

August 31, 2026 · Updated Aug 31, 5:41pm ET

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What happened

The Federal Trade Commission and 22 states sued Amazon in the U.S. District Court for the Western District of Washington on Monday, alleging it secretly overcharged about 1.2 million advertising customers. The complaint says Amazon manipulated its online search-ad auctions and imposed undisclosed surcharges for seven years, raising the prices brands and sellers paid to promote products. Regulators allege the practices generated more than $20 billion for Amazon and that higher ad costs were passed on to shoppers through prices for goods sold on its marketplace.

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