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FinanceFTC sues Amazon, accusing ecommerce giant of misleading advertisers on ad pricing and auction systems
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The Federal Trade Commission (FTC) filed a lawsuit against Amazon on Monday, August 31, 2026, accusing the e-commerce giant of misleading advertisers about its sponsored ads pricing and auction systems. The lawsuit alleges a company-wide effort to deceive advertisers, including a change made in 2018 to Amazon's auction strategy. The FTC claims that advertisers were harmed by these deceptive practices. Amazon confirmed the lawsuit. The report, published by CNBC, is described as breaking news, with updates expected. The case centers on Amazon's advertising business, which has become a significant revenue stream for the company, and the FTC's allegations of systematic deception in how ad auctions and pricing are presented to advertisers.
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A worker sorts packages on Amazon Prime Day in New York, July 8, 2025. Klaus Galiano | Bloomberg | Getty Images
The Federal Trade Commission (FTC) on Monday filed a lawsuit against Amazon, accusing the e-commerce giant of misleading advertisers about its sponsored ads pricing and auction systems, the company confirmed.
The lawsuit alleges that advertisers were harmed by a "company-wide effort to deceive" them, including a change Amazon made in 2018 to its auction strategy.
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FTC sues Amazon, alleging secret ad price hikes cost advertisers billions