FTC and States Sue Amazon Over Alleged Secret Ad Surcharge: What It Means for Independent Ecommerce

FTC and States Sue Amazon Over Alleged Secret Ad Surcharge: What It Means for Independent Ecommerce

Ecommerce Innovation Alliance

September 29, 2026

On August 31, 2026, the Federal Trade Commission and 22 state attorneys general sued Amazon, alleging that for more than seven years the company secretly inflated the prices advertisers paid for Sponsored Products, Sponsored Brands and Display ads. The complaint estimates the scheme likely extracted over $20 billion from roughly 1.2 million U.S. advertisers, including more than 500,000 small and medium-sized businesses.…

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