Close Menu
  • Home
  • AI
  • Art & Style
  • Economy
  • Entertainment
  • International
  • Market
  • Opinion
  • Politics
  • Sports
  • Trump
  • US
  • World
What's Hot

Construction on $400 million White House ballroom will continue, U.S. Supreme Court says | Court News

August 31, 2026

The Department of Defense now has its own versions of ChatGPT and Grok

August 31, 2026

Supreme Court allows President Trump to build White House banquet hall as litigation continues

August 31, 2026
Facebook X (Twitter) Instagram
Smart Breaking News on AI, Business, Politics & Global Trends | WhistleBuzz
Facebook X (Twitter) Instagram
  • Home
  • AI
  • Art & Style
  • Economy
  • Entertainment
  • International
  • Market
  • Opinion
  • Politics
  • Sports
  • Trump
  • US
  • World
Smart Breaking News on AI, Business, Politics & Global Trends | WhistleBuzz
Home » FTC sues Amazon for misleading advertisers
US

FTC sues Amazon for misleading advertisers

Editor-In-ChiefBy Editor-In-ChiefAugust 31, 2026No Comments3 Mins Read
Share Facebook Twitter Pinterest LinkedIn Tumblr Telegram Email Copy Link
Follow Us
Google News Flipboard
Share
Facebook Twitter LinkedIn Pinterest Email


The Federal Trade Commission filed the lawsuit on Monday. Amazonalleging that the e-commerce giant “secretly and systematically overcharged” advertisers on its platform by manipulating pricing and auction systems.

The lawsuit, joined by 22 state attorneys general, alleges that Amazon may have taken more than $20 billion from advertisers through “hidden surcharges” dating back to auction rule changes that took effect in 2019.

“Amazon has millions of advertising customers who were misled and forced to pay significantly higher prices,” FTC Chairman Andrew Ferguson said in a statement. “These higher costs were primarily passed on to American consumers.”

Amazon said in a blog post that the FTC’s lawsuit is “misguided” and that the complaint “fundamentally misunderstands how advertisers operate.” The company added that the authorities’ case contains no evidence of consumer price increases.

“We provide advertisers with auction and pricing guidance for the key tools they use to manage their campaigns, and we will continue to update that guidance,” the company said. “We look forward to litigating the case in court.”

The company said its auction system saved advertisers $8 billion between 2021 and 2025 at no extra cost.

The complaint, filed in the U.S. District Court for the Western District of Washington, focuses on Amazon’s sponsored product ads, brand ads, and display ads that run alongside search results on its vast web store.

Amazon has built the world’s third-largest digital advertising business, coming in second place. google and meta. The company generated more than $68 billion in advertising revenue last year, much of it from sponsored product ad sales.

Third-party sellers who sell products on Amazon’s marketplace have recently criticized the site’s soaring advertising costs, including a series of recent policy changes, with some large sellers withholding ad spending in a boycott.

The company has traditionally used a “second-price” auction system, telling advertisers that they would “pay only the lowest bid needed to win,” the complaint says, citing Amazon’s own marketing materials.

In its complaint, the FTC alleges that Amazon changed its auction rules without notice in 2019 by adding an undisclosed additional fee called a “soft reserve price,” which led to higher advertised prices.

“Amazon made these secret changes to its auctions because it was dissatisfied with the revenue its advertising auctions were generating,” the agency said in its complaint, citing internal communications between Amazon’s advertising executives.

The FTC said executives at one exchange admitted to using “manufactured auction participants” to inflate prices.

The FTC and states allege that Amazon’s actions violate federal and state consumer protection laws and are seeking civil penalties, restitution, and unspecified other damages.

This is the latest example of Amazon being targeted by the FTC. Last September, Amazon reached a $2.5 billion settlement with the agency to resolve a separate investigation into its Prime membership program.

The company is also scheduled to go to trial next year in a lawsuit brought by the FTC and 17 states that accuses it of exercising “monopoly power” to jack up prices, crush third-party sellers and reduce quality for shoppers. Amazon denies wrongdoing.



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email
Editor-In-Chief
  • Website

Related Posts

ChatGPT Work Experience outage for Microsoft Outlook and OpenAI

August 31, 2026

Kramer: Why Tim Cook deserves more credit for his work as Apple CEO

August 31, 2026

5 things to know before the stock market opens on Monday

August 31, 2026
Add A Comment

Comments are closed.

News

Construction on $400 million White House ballroom will continue, U.S. Supreme Court says | Court News

By Editor-In-ChiefAugust 31, 2026

The decision replaces an interim order issued earlier this month.Published August 31, 2026August 31, 2026A…

Top US general says there are no plans to send troops to vote in November election | 2026 US midterm election news

August 31, 2026

Iran could face economic collapse within months, US Treasury Secretary Besent warns | Banking News

August 31, 2026
Top Trending

The Department of Defense now has its own versions of ChatGPT and Grok

By Editor-In-ChiefAugust 31, 2026

The Department of Defense announced versions of OpenAI’s ChatGPT and xAI’s Grok,…

At TechBBQ, the conversation about AI in Europe went something like this: Who is actually in control?

By Editor-In-ChiefAugust 31, 2026

At TechBBQ in Copenhagen, the conversation among investors, founders, and executives from…

Harvard Law School dropout raises $6 million for Blue Voice to build ‘Harvey for Police Officers’

By Editor-In-ChiefAugust 31, 2026

David Lawrence was a student at Harvard Law School when a police…

Subscribe to News

Subscribe to our newsletter and never miss our latest news

Welcome to WhistleBuzz.com (“we,” “our,” or “us”). Your privacy is important to us. This Privacy Policy explains how we collect, use, disclose, and safeguard your information when you visit our website https://whistlebuzz.com/ (the “Site”). Please read this policy carefully to understand our views and practices regarding your personal data and how we will treat it.

Facebook X (Twitter) Instagram Pinterest YouTube

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Facebook X (Twitter) Instagram Pinterest
  • Home
  • Advertise With Us
  • Contact US
  • DMCA Policy
  • Privacy Policy
  • Terms & Conditions
  • About US
© 2026 whistlebuzz. Designed by whistlebuzz.

Type above and press Enter to search. Press Esc to cancel.