Amazon Sued by 22 States and FTC Over Deceptive Advertising Practices
A coalition of 22 states and the Federal Trade Commission (FTC) filed a lawsuit against Amazon.com Inc (NASDAQ: AMZN) on August 31, 2026. The lawsuit alleges that Amazon engaged in deceptive and unfair practices in its online advertising auctions for over seven years.
According to the complaint, Amazon secretly increased advertising costs for more than one million advertisers, including over 500,000 small and medium-sized businesses. This alleged pricing strategy imposed tens of billions of dollars in additional expenses on advertisers, which could have been passed on to consumers nationwide.
The lawsuit highlights growing concerns over Amazon's pricing strategies impacting its advertisers and small businesses. Despite this, investors remain confident in the company's future revenue growth, with a Price-to-Sales ratio above its historical median.