Updated 1w+ ago · Politics
FTC and 22 States Sue Amazon Over Secret Ad Surcharges
The FTC sued Amazon Monday, alleging the company manipulated ad auction prices and misled advertisers about its pricing systems for seven years.
- 20+ state attorneys general, from both parties, joined the lawsuit.
- Amazon earned $68 billion in digital advertising revenue in 2025.
- Amazon's alleged scheme began in 2018 and raised minimum ad prices 70%-80% of the time.
- This is the FTC's third major case against Amazon; a monopolization trial is also pending.
Why it matters: The FTC alleges Amazon used a hidden mechanism — an internal bid called a 'soft reserve' — to inflate what merchants paid for sponsored ads without their knowledge.
- Amazon knew merchants' competing bids and did not disclose its own bidding practice, FTC officials said.
- Some state attorneys general may seek to recover money advertisers overpaid.
How 48 sources split on this story
Source landscape
Factuality
High
Mixed
Low
Strong LeftLeftLean LeftCenterLean RightRightStrong Right
Political Bias
Coverage by lean
48 sources · 54 articles · 36% Left coverage
Where they split: Coverage does not split on facts; the core allegations come from FTC officials and Amazon has not publicly disputed the filing's basic description.
Center coverage, 17 sources: The center frames this as a straightforward regulatory enforcement action against a major tech company's ad business.
CNBC1w+FTC sues Amazon, accusing the ecommerce giant of misleading advertisersReuters1w+US-Behörde verklagt Amazon - Vorwurf Preismanipulation bei Werbungabc27 (WHTM)1w+Pennsylvania AG joins 21 others in suing Amazon over alleged deceptive practicesAssociated Press1w+Federal Trade Commission and 22 states sue Amazon over inflated advertising pricesEngadget1w+Amazon Is Sued By The FTC And 22 States For 'Secretly' Overcharging Advertisers Since 2019Financial Times1w+US regulator sues Amazon for manipulating advertising pricesForbes1w+Amazon Facing FTC Lawsuit Over Secretly Raising Advertiser PricesIBTimes1w+Amazon Faces New FTC Lawsuit. Regulators Claim Advertisers Were Secretly Charged Higher Prices.Jerusalem Post1w+US Federal Trade Commission, 22 US states sue Amazon over allegedly illegal advertising practicesMarketWatch1w+Amazon’s stock slips as the FTC alleges billions of dollars in hidden ad feesNews4Jax1w+Federal Trade Commission and 22 states sue Amazon over inflated advertising pricesNPR1w+U.S. sues Amazon over its advertising pricesPennLive1w+Amazon ran ‘a secret ad surcharge scheme,’ lawsuit claimsStateline1w+Feds and 22 states sue Amazon, alleging deceptive advertising schemeUSA Today1w+FTC alleges Amazon overcharged advertisers for yearsWPXI Pittsburgh1w+FTC, 22 states sue Amazon over advertising pricesWTAJ1w+PA joins multi-state lawsuit against Amazon over deceptive, unfair advertising prices
Left17 sources
The Independent1w+California joins sweeping lawsuit accusing Amazon of ‘rigging’ billions of ad auctionsCNN1w+FTC sues Amazon, alleging it overcharged advertisersBusiness Insider1w+Why the FTC's Amazon lawsuit matters to CMOs and what they should doCBS News1w+FTC and 22 states sue Amazon over alleged secret ad surcharge schemeCleveland.com1w+Amazon ran ‘a secret ad surcharge scheme,’ lawsuit claimsFlorida Phoenix1w+Feds and 22 states sue Amazon, alleging deceptive advertising schemeGizmodo1w+FTC Sues Amazon for Allegedly Duping AdvertisersLos Angeles Times1w+Federal Trade Commission and 22 states sue Amazon over inflated advertising pricesOhio Capital Journal1w+Feds and 22 states sue Amazon, alleging deceptive advertising schemePennsylvania Capital-Star1w+Feds and 22 states — including Pennsylvania — sue Amazon, alleging deceptive advertising schemeSan Francisco Chronicle1w+California joins suit against Amazon over ad pricesTechCrunch1w+FTC accuses Amazon of running a ‘secret ad surcharge scheme’ in new lawsuit | TechCrunchThe Boston Globe1w+FTC and 22 states claim in lawsuit that Amazon secretly inflated ad pricesThe Guardian1w+US trade regulator and 22 states accuse Amazon of taking $20bn with secret surchargesThe New York Times1w+FTC and 22 States Sue Amazon Over Advertising PracticesThe Verge1w+FTC lawsuit alleges Amazon has been ‘secretly and systematically’ overcharging for adsThe Washington Post1w+Amazon secretly inflated ad prices, the FTC and 22 states allege in a lawsuit
Right coverage, 14 sources: The right focuses on market impact — Amazon's share price drop — and the scale of alleged profits from the scheme, while reporting the FTC's allegations factually.
Wall Street Journal1w+Exclusive | FTC to File Lawsuit Alleging Amazon Deceived AdvertisersZeroHedge1w+Amazon Shares Tumble Amid News Of FTC 'Advertiser Deception' LawsuitBizPac Review1w+FTC and states hit Amazon with lawsuit, allege company gouged advertisers leading to higher prices for consumersCitizen Free Press1w+FTC and 22 states sue Amazon.Independent Journal Review1w+FTC Sues Amazon Over Ad PricingJust the News1w+FTC joins 22 states in suing Amazon over alleged secret ad surcharge schemeNew York Post1w+Bombshell suit claims Amazon cheated advertisers out of billions by secretly manipulating ad pricesNewsmax1w+Amazon Sued by FTC & More Than 20 StatesNTD1w+Amazon Sued by FTC, 22 States Over Ad Sales PracticesThe Center Square1w+Federal Trade Commission, 22 states accuse Amazon of $20B schemeThe Daily Caller1w+FTC And States Hit Amazon With Lawsuit, Allege Company Gouged Advertisers Leading To Higher Prices For ConsumersThe Epoch Times1w+FTC, 22 States Sue Amazon Over Alleged Secret Ad-Surcharge SchemeThe Washington Times1w+Federal Trade Commission and 22 states sue Amazon over inflated advertising pricesWashington Examiner1w+FTC and 22 states sue Amazon over alleged ‘hidden surcharges’ for advertisers
What’s next: The case will proceed in Seattle federal court.
- Amazon confirmed the lawsuit Monday but had not issued a detailed public response.
- How will Amazon defend the 'soft reserve' bidding practice in court?
- Which states are seeking financial recovery, and how much do they claim advertisers lost?
- Will this case be combined with or run parallel to the pending monopolization trial?
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