Amazon Stock Falls Amid FTC Advertising Fees Lawsuit Threat

Amazon's stock price fell by about 1.87% in the latest session due to market reports that the US Federal Trade Commission is preparing to sue the company over allegedly excessive advertising fees.

The potential lawsuit focuses on sponsored listings sold on Amazon's marketplace and alleges that advertisers have been systematically overcharged by more than $20,000,000,000 since 2019. Around 1,200,000 advertising clients are affected, including more than 500,000 small and medium-sized businesses.

Amazon's stock price has gained about 12% year-to-date in 2026, broadly in line with the performance of the S&P 500 index. The company delivered double-digit revenue growth in its most recent reported quarter, driven by expansion in e-commerce operations and Amazon Web Services.

The market still prices in sustained revenue and profit growth for Amazon, supported by strong cloud demand and ongoing efficiency measures in retail logistics.