FTC and 22 States Sue Amazon Over Allegations of Ad Auction Manipulation

<p>The Federal Trade Commission (FTC) and 22 states filed a lawsuit against Amazon on September 1, 2026, alleging that the company has engaged in a scheme to overcharge advertisers for seven years.</p><p>The lawsuit claims that since 2019, Amazon.com, Inc. has systematically overcharged its approximately 1.2 million advertising customers by manipulating the auction process used to determine ad prices on its platform. According to the lawsuit, Amazon misrepresents that competitive auctions set advertising prices, while in reality, it overrides actual auction results with higher prices to increase its profits.</p><p>The FTC stated that it obtained internal documents and messages indicating how Amazon inflated auction prices for various advertising formats, including Sponsored Products, Sponsored Brands, and Sponsored Display ads, which appear alongside consumer search results. The investigation by the FTC commenced in 2024.</p>