FTC and 22 states sue Amazon for alleged secret surcharges on advertisers

The Federal Trade Commission, joined by 22 states, filed a lawsuit against Amazon on Monday alleging that the online retailer “secretly and systematically overcharged” advertisers for years. According to the complaint, Amazon’s alleged pricing practices inflated the cost of advertising on its platform, which in turn raised prices for consumers on essential goods such as groceries and other household items sold through the site. The plaintiffs argue that the higher advertising fees were passed on to buyers, creating a direct link between Amazon’s billing practices and increased consumer costs.

The lawsuit claims that Amazon’s overcharging was not an isolated incident but a deliberate, long‑term strategy to maximize revenue from advertisers. The FTC and the states seek to halt the alleged practices and recover damages, asserting that the company’s conduct violated antitrust and consumer protection laws. Amazon has not yet responded to the allegations. The case is expected to prompt a broader examination of how e‑commerce platforms price advertising and the impact on consumer prices.