Amazon Hit with $20 Billion Lawsuit Over Alleged Advertiser Rip-Off

The US Federal Trade Commission (FTC) and 22 state attorneys general have sued Amazon.com Inc. over allegations that the e-commerce giant systematically overcharged advertisers by more than $20 billion since 2019.

The complaint, filed in Seattle federal court on August 31, 2026, alleges that Amazon misled approximately 1.2 million advertising customers, including over 500,000 small and medium businesses, about the pricing and terms of its sponsored listings.

Sponsored listings are top products displayed to users when they search Amazon's online marketplace.