This is the first time regulators have gone after auction mechanics inside a closed retail media platform.
By Seb Joseph • September 1, 2026 •
Ivy Liu
The Federal Trade Commission (FTC) and 22 state attorneys generals are suing Amazon alleging the company secretly overcharged advertisers in its search ad auctions for more than seven years. The suit was filed in the Western District of Washington.
Here’s what happened and why it matters.
What did Amazon allegedly do?
FTC and 22 states sue Amazon over alleged secret ad surcharge scheme
FTC sues Amazon for manipulating ad auction prices
FTC accuses Amazon of running a ‘secret ad surcharge scheme’ in new lawsuit | TechCrunch
FTC sues Amazon alleging it overcharged advertisers for billions of dollars
FTC files landmark lawsuit claiming Amazon deceived advertisers out of billions
FTC, 22 states sue Amazon over alleged 'hidden surcharges' for advertisers
FTC sues Amazon, accusing the e-commerce giant of misleading advertisers
FTC sues Amazon, alleging it overcharged advertisers | CNN Business
FTC alleges Amazon hid overcharges to advertisers in lawsuit backed by 22 states
U.S. regulator, 22 states accuse Amazon of 'manipulating' ad auctions in lawsuit
