FTC and 22 states sue Amazon over alleged inflated advertising auction prices

The FTC and about 22 states sued Amazon on August 31, 2026, in federal court, alleging it inflated ad auction prices and misled about 1.2 million US advertisers through secret surcharges on Sponsored Products, Sponsored Brands and Sponsored Display. Siliconangle reports the alleged cost to advertisers was tens of billions of dollars over seven years. Amazon calls the suit misguided and says its average cost-per-click for Sponsored Products was flat from 2019 to 2024 after inflation.

• Filed August 31, 2026 by the FTC with about 22 states
• Alleged harm: tens of billions of dollars to advertisers over seven years (per Siliconangle)
• About 1.2 million US advertisers affected; Sponsored Products, Brands and Display named
• Relief sought includes an injunction, monetary relief and civil penalties where authorized
• Amazon: CPC for Sponsored Products flat 2019-2024 after inflation; says it will make its case in court