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The U.S. FTC and 22 states sued Amazon, alleging that it obtained more than $20 billion through undisclosed advertising surcharges and that approximately 1.2 million advertising customers may be affected.
Key decision points
- 1More than $20 billion allegedly obtained
- 2FTC and 22 states filed lawsuit
- 3Approximately 1.2 million advertising customers affected
What this means for sellers
The lawsuit puts greater compliance scrutiny on the transparency of Amazon’s advertising fees. Sellers should not rely only on the deductions shown in their dashboards. If surcharges and actual advertising costs are treated as the same item, profit calculations and pricing decisions may be distorted. Highest priority: this week, check advertising invoices, campaign rates, and product gross margins line by line, and retain records of fee changes.
Action items (within 24h)
The U.S. Federal Trade Commission (FTC), together with 22 states, filed a lawsuit against Amazon, alleging that the company imposed and collected insufficiently disclosed surcharges in its advertising business. The allegations concern advertising services Amazon provides to merchants and brands. Regulators said the charges increased advertisers’ actual campaign costs.
According to the lawsuit-related materials, Amazon allegedly accumulated more than $20 billion through hidden advertising markup mechanisms, affecting approximately 1.2 million advertising customers. The case is being pursued jointly by the FTC and the participating state governments, which are asking the court to review Amazon’s advertising fee practices.
The allegations also concern the possible transmission of the cost burden through advertising spending and product pricing. As the defendant, Amazon will respond to the regulators’ factual findings and legal claims in subsequent litigation proceedings.