Major lawsuit filed against Amazon for allegedly manipulating ad auctions, costing customers over $20 billion.

FTC and States File Lawsuit Against Amazon

The Federal Trade Commission (FTC) and 22 states have filed a lawsuit against Amazon, accusing the company of manipulating digital ad auctions on its platform. According to the complaint, this manipulation has resulted in over 1.2 million customers incurring excess costs exceeding $20 billion.

Allegations of Manipulation and Hidden Fees

The lawsuit, submitted to a federal court in Washington, claims that Amazon systematically imposed inflated fees on advertisers by manipulating the pricing mechanism for ads. The complaint alleges that since 2018, Amazon has altered auction outcomes to raise prices without notifying customers, even taking steps to conceal these changes.

Amazon’s Response: “Misleading” and “Flawed”

In response to the lawsuit, Amazon labeled the allegations as “misleading” and “flawed.” The company accused regulators of selectively using outdated internal documents to support their claims, as reported by Agence France-Presse.

Unusual Bipartisan Support

California Attorney General Rob Bonta stated that Amazon “manipulated billions in ad auctions.” He noted that this initiative enjoys support from both Republican and Democratic parties, a rare occurrence in today’s political climate.

Third Major Lawsuit Against Amazon in Two Years

This lawsuit marks the third significant legal action the FTC has taken against Amazon:

• In September 2025, Amazon agreed to pay $2.5 billion to settle allegations regarding the unauthorized enrollment of customers in its Prime service and the difficulty of canceling subscriptions.
• A trial is set to begin early next year concerning accusations that Amazon unlawfully maintained a monopoly in online retail.

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