FTC and 22 States Take Legal Action Against Amazon for Alleged Hidden Ad Surcharges

POLICY WIRE — Washington, D.C. — The Federal Trade Commission (FTC) and 22 states have filed a lawsuit against Amazon, accusing the e-commerce giant of covertly inflating prices in its online search...

Editorial Desk

September 1, 2026 One Min Read

POLICY WIRE — Washington, D.C. — The Federal Trade Commission (FTC) and 22 states have filed a lawsuit against Amazon, accusing the e-commerce giant of covertly inflating prices in its online search advertising auctions. This alleged scheme may have resulted in customers paying tens of billions of dollars more.

The legal action claims that Amazon applied undisclosed surcharges for a period of seven years. These additional charges increased the costs for over 1 million brands and sellers on the platform who were required to pay to advertise.

Joining the FTC in this lawsuit are the attorneys general from Alaska, Arizona, California, Colorado, Florida, Idaho, Illinois, Indiana, Iowa, Kentucky, Louisiana, Maryland, Nebraska, New Jersey, New York, North Carolina, Oklahoma, Pennsylvania, Rhode Island, South Carolina, Vermont, and Washington.

FTC Chairman Andrew N. Ferguson stated, The impact of unfair and deceptive practices by one of the world’s largest online retailers can be immense. Amazon misled millions of advertising customers into paying significantly higher prices, which were largely passed on to American consumers.

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Amazon has not yet provided a response to requests for comment on this matter.

Reporting by Policy-Wire (PW)

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