FTC and 22 States Sue Amazon Over Advertising Charges
The Federal Trade Commission and 22 states sued Amazon, alleging that it inflated advertising prices on its platform. The case could affect sellers’ advertising costs and campaign compliance.
What are the key facts?
- 1U.S. Federal Trade Commission
- 222 states
- 3August 31, 2026
- 4Amazon advertising prices
What happened?
The Associated Press reported that on August 31, 2026, the U.S. Federal Trade Commission, together with 22 U.S. states, filed a lawsuit against Amazon. The plaintiffs allege that Amazon engaged in practices in its platform advertising business that artificially raised advertising prices and affected advertising auctions and pricing. The case involves the on-site advertising services Amazon provides to third-party merchants on its platform. The plaintiffs argue that the practices harmed the economic interests of third-party merchants and also affected consumers on the platform. The lawsuit was jointly filed by the Federal Trade Commission and multiple state governments. The dispute focuses on how Amazon’s advertising prices are formed and the related business practices.
What does this mean for cross-border sellers?
Amazon’s on-site advertising pricing mechanism is facing litigation scrutiny, so sellers should include potential changes to advertising costs and campaign rules in their business monitoring. A common mistake is to track sales without reviewing actual advertising costs, which can lead to margin compression or distorted campaign performance. Highest-priority action: This week, review return on spend by product and campaign, and retain records of fees and bids.